Black Swan Elliott Wave Framework – Key Patterns

We continuously scan price action in the major currency pairs and key market indices within hourly, four-hour, daily, and weekly timeframes in an effort to define the best-fit among the seven impulse and fourteen corrective patterns defined below.  Our expected goals from applying an Elliott Wave framework include: 1) higher probability trade setups; 2) technically sound risk levels; and 3) more objective profit targets.    


Seven Impulse Patterns                                                Abbreviation          

                        Extended Wave 1                                            IE1

                        Extended Wave 3                                            IE3

                        Extended Wave 5                                            IE5

                        Diagonal (Ending and Contracting)                 IDEC

                        Diagonal (Ending and Expanding)                   IDEE  

                        Diagonal (Leading and Contracting)               IDLC

                        Diagonal (Leading and Expanding)                  IDLE  

 

Fourteen Corrective Patterns                             

                        Zig Zag           (5-3-5)            

                                                Single                                      ZZs

                                                Double                                    ZZd

                                                Triple                                       ZZt

                        Flat      (3-3-5)            

                                                Horizontal                               Fh

                                                Expanding                               Fe

                                                Running                                  Fr

                        Triangle                                  

                                                Contracting                             Tc

                                                Ascending                               Ta

                                                Descending                             Td

                                                Expanding                               Te

                        Combinations*                 

                                                Flat-X-Zig Zag                        FXZZ

                                                Flat-X-Triangle                       FXT

                                                Zig Zag-X-Flat                       ZZXF

                                                Zig Zag-X-Triangle                 ZZXT

                               *Triple combos not included