Elliott Waves are fractal — the same five-wave impulse and three-wave corrective patterns appear at every scale, from monthly charts down to tick charts. Wave degrees label these nested patterns: Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, Minuette, Sub-Minuette. Understanding multi-degree analysis allows traders to see how smaller waves fit into larger structures.
Nine wave degrees: Grand Supercycle (centuries) → Sub-Minuette (minutes). Each impulse wave contains five smaller waves. Each corrective wave contains three smaller waves. Wave 1 of a larger Wave 3 contains its own 5-wave sub-structure. Multi-timeframe analysis: higher degree provides trend direction, lower degree provides entries.
Identify the larger-degree wave count for trend bias, Enter on smaller-degree wave completions within the larger-degree trend, Wave 3 of Wave 3 (multiple degrees aligning) = strongest move, Trade only when multiple wave degrees agree on direction
Exit when the higher-degree wave count projects completion, Trail using the smaller-degree wave structure, Multi-degree divergence = exit signal
Grand Supercycle: Monthly. Cycle: Weekly. Primary: Daily. Intermediate: 4H. Minor: 1H. Minute: 15M.
The fractal nature of waves means you're always in multiple timeframe positions simultaneously. Don't lose the forest for the trees — a perfect 15M setup is meaningless if it's fighting the Daily wave count.
Each Elliott Wave position carries a distinct psychological character that reflects the emotions and behaviour of market participants during that phase. Wave one is disbelief, wave three is recognition and momentum, wave five is euphoria, wave A is denial, wave B is false hope, and wave C is capitulation. Understanding these personality traits helps traders identify which wave is currently unfolding.
Complex corrections in Elliott Wave theory combine two or three simple corrective patterns (zigzags, flats, or triangles) connected by intervening waves labelled X. These structures — double and triple zigzags, double and triple threes — create extended sideways or slightly trending corrective phases that consume time and frustrate traders before the larger trend resumes.
Diagonals are wedge-shaped Elliott Wave patterns that occur in specific positions within the wave structure. Leading diagonals appear in wave one or wave A positions and signal the beginning of a new trend. Ending diagonals appear in wave five or wave C positions and signal trend exhaustion. Both types feature overlapping sub-waves contained within converging trendlines.
The impulse wave pattern consists of five waves in the direction of the larger trend: three motive waves (1, 3, 5) separated by two corrective waves (2, 4). This is the core structure of Elliott Wave Theory. Wave 3 is typically the longest and most powerful, never the shortest. Wave rules: Wave 2 cannot retrace beyond the start of Wave 1. Wave 4 cannot overlap with Wave 1 territory (except in diagonals).