Learning Elliott wave is a lot like learning to ride a bike. Rarely does one just hop on their bike and go. Many times, the new rider falls several times and scrapes a knee before they get proficient at riding the bike. All along, the new rider typically has a parent or older sibling helping guide them.
There are many similarities to this and learning to create your own Elliott wave counts.
Many have learned the rules and guidelines and can read a well coherent count. I want to throw a curveball at you today.
Another way to learn Elliott wave is to take what you know and see if you can identify mistakes within the count.
Let me give you a big clue. Mistakes are not judgment calls. At any given time there are multiple wave counts available that don’t break any of the rules. The mistakes below are deliberate and break one or more of Elliott’s rules regarding counting a structure.
The chart below is an Elliott wave count which I have put three deliberate mistakes in. Your goal is to see if you can identify the mistakes in wave counting.
The analysis begins at the green circle on the lower left-hand portion of the chart and ends at the green circle on the upper right-hand portion.
I have added grey price labels so you can see what the swing high and swing low price levels were when analyzing the market.
If you need a clearer copy of the chart, consider visiting this image from tradingview.
Can You Find 3 Deliberate Errors on the Elliott Wave Chart?
Take a close look at the chart above and see if you can identify the three deliberate mistakes.
Email me with your ideas as to what the errors are. You can message me from the contact us page.
Elliott Wave Labeling Mistakes Revealed
Ok, ready to see how you did? A follow-up post was made revealing the labeling mistakes and how to correct them.
In order to generate your own wave count and to find the mistakes, you will need to understand the rules associated with Elliott Wave Theory. Reading the rules out of a book is one thing. Learning how to apply the rules in a live market environment is entirely different.
If you are uncertain of the rules and don’t know where to begin, I can help.
I have created this course to help traders learn Elliott wave and how to trade with it.
I invite you to join us in the course. You will have specific assignments to help you grow through the course where I provide you with feedback. Additionally, you’ll have direct access to me in our online forum to answer questions you may have.
We will see you in the course!