One of the most fascinating aspects of Elliott Wave Theory is that it’s based on fractals—self-repeating patterns that exist on different time scales. Simply put: every wave is made up of smaller waves, and those smaller waves follow the same rules as the larger ones.
📈 Elliott Waves Are Fractals
Fractals are natural patterns that repeat themselves, no matter how much you zoom in or out. You see this in nature with seashells, snowflakes, and even trees—and in financial markets, too.
In Elliott Wave Theory:
- Impulse Waves (1, 3, 5) are each composed of their own 5-wave impulse pattern.
- Corrective Waves (2, 4) typically consist of a 3-wave corrective pattern.
Here’s a breakdown of what that looks like visually:
🔁 The Wave Inside the Wave
Each Elliott wave is made of smaller waves that mirror the same pattern. And it doesn’t stop—this structure repeats infinitely across timeframes.
To help organize this fractal structure, Elliott Wave Theory categorizes waves by size and time frame:
⏳ Wave Degrees (Largest to Smallest)
- Grand Supercycle (multi-century)
- Supercycle (40–70 years)
- Cycle (1–10+ years)
- Primary (months to a few years)
- Intermediate (weeks to months)
- Minor (weeks)
- Minute (days)
- Minuette (hours)
- Sub-Minuette (minutes)
Each wave of a higher degree contains multiple waves of the next lower degree. For example:
- A Cycle wave consists of Primary waves,
- Primary waves contain Intermediate waves, and so on.
📊 Elliott Wave in Real Market Charts
In the real world, market waves won’t always look picture-perfect. Markets are noisy, and identifying wave patterns takes practice.
But the more charts you study, the better you’ll become at spotting these patterns and recognizing their fractal nature.
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