To The Moon

$NASDAQ(.IXIC)$  $Amazon.com(AMZN)$ $Meta Platforms, Inc.(FB)$ 

According to elliot , Market is either trending or it is correcting

This is the weekly chart of nasdaq composite.

Once a trendline breaks, the trending phase ends and the corrective phase begins.

Different types of correction waves are 

1) ABC

2) WXY

3)WXYXZ

In this example we will focus on ABC correction.

Let us go to the lower time framd and draw the ABC correction pattern.

As you see in the above chart, ABC correction is highlighted.

In the ABC correction we need to focus on A ,B and C

A can be 5 wave or 3 wave

B is always 3 wave.

C is always 5 wave.

Let us mark the internals of these waves on chart 

You can see in the above chart how 'A' is internally divided into 5 subwaves 12345

B is divide in 3 sub wave ABC

C is divided into 5 subwave

Many people recently asked a question that after the fed rate hike ,market rallied ,but started to fall again .

The reason is  5 wave 'C' was not complete so that the price rise on the fed rate hike was just to complete the 4 sub wave.

This is just the start and there will be more follow up posts to cover this in more details.

Till then stay tuned.

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