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Normal Course · Chapter 1 · Intermediate

Market Structure & Elliott Wave Foundations

Learn to read crowd psychology through price patterns, identify trend direction, and use probabilistic wave counting to anticipate market behavior.

⏱ 90–120 minutes 📚 Intermediate level 📋 6 modules
Important Reminder Forex and crypto trading are high risk and speculative. Everything on this website is for education only and not financial advice. Never trade with money you cannot afford to lose. Always start with a demo or paper trading account. For real investment decisions, consult licensed financial professionals in the Philippines.

What you’ll be able to do after this chapter

  • Explain how markets move in cycles of impulse and correction
  • Describe and apply the three hard rules of Elliott Wave impulses
  • Identify when a wave count is invalid and needs to be relabeled
  • Recognize basic corrective structures (ABC and triangles)
  • Use TradingView to draw Fibonacci retracements and measure pullback zones
  • Label a simple 5-wave and 3-wave structure on real charts
  • Mark invalidation levels to protect yourself from wrong analysis

Introduction: Your first hands-on lesson

This chapter introduces you to market structure and Elliott Wave Theory as a framework for understanding how price moves in cycles. You'll learn to read crowd psychology through price patterns, identify trend direction, and use probabilistic wave counting to anticipate market behavior.

By the end of this chapter, you'll be able to label basic wave structures, spot trend changes, and understand when your analysis might be wrong—an essential skill for any trader.

Important note: Elliott Wave is not a crystal ball. It's a tool that helps you understand the “why” behind price movements based on repeating patterns of investor psychology. You'll use it alongside other tools, not as a standalone prediction system.

Prerequisites

Before starting this chapter, you should have completed the Beginner course and have an understanding of candlesticks, RSI/MACD/Moving Averages, and basic TradingView navigation.

What’s coming in Chapter 2

  • Pattern Recognition: Classic chart patterns like head-and-shoulders, double tops/bottoms, and how they relate to wave structure
  • Heikin-Ashi Candles: A momentum smoothing tool that helps you see trend strength more clearly
  • Stop-Loss and Take-Profit Design: How to set protective stops and profit targets based on structure
  • Risk-Reward Planning: Connecting your wave counts to actual trade management
Risk Reminder Only trade with money you can afford to lose. Start with a demo account. Never risk more than a small percentage of your capital on any single trade. Elliott Wave is a tool for education and analysis, not a guarantee of success.

Module roadmap

Module 1 — How Markets Breathe

8–10 min

Learn how markets move in pushes (impulse) and pauses (corrections). Identify swing highs/lows and understand trend structure: higher highs/higher lows (uptrend) vs lower highs/lower lows (downtrend). Recognize when structure breaks signal potential reversals.

  • Impulse · Correction · Swing Highs/Lows · Trend Structure · Structure Breaks

Module 2 — Elliott Wave Theory in Plain English

12–15 min

Understand the basic 5-3 pattern: five waves with the trend, three waves against it. Learn the concept of fractals (waves within waves) and the three immutable rules that validate any wave count.

  • 5-Wave Impulse · 3-Wave Correction · Fractals · Three Hard Rules · Wave Labeling

Module 3 — Corrections You’ll Actually See

10–12 min

Master the main types of corrective structures: ABC patterns (zigzag and flat) and triangle patterns (A-B-C-D-E). Understand where corrections typically appear and why they’re healthy market behavior.

  • ABC Corrections · Zigzag (5-3-5) · Flat (3-3-5) · Triangle Patterns · Compression Zones

Module 4 — Fibonacci Retracement for Context

10–12 min

Learn what Fibonacci retracement is and why traders watch key levels: 38.2%, 50%, and 61.8%. Draw Fibonacci on TradingView and use it with wave structure—not as a standalone tool.

  • Fibonacci Levels · 38.2% · 50% · 61.8% · Golden Ratio · Attention Zones

Module 5 — TradingView Hands-On Practice

15–20 min

Label waves directly on TradingView charts. Check your wave count against the three hard rules. Draw Fibonacci retracement and mark your invalidation price. Practice with BTCUSDT and GBPUSD charts.

  • Chart Setup · Wave Labeling · Rule Checking · Invalidation Marking · BTCUSDT · GBPUSD

Module 6 — Where Elliott Wave Fits in Your Trading

4–6 min

See how Elliott Wave complements RSI, MACD, and price action. Understand why no single tool should be used in isolation and how wave analysis helps with timing entries, exits, and risk management.

  • Integration · RSI · MACD · Entry Timing · Risk Management · Realistic Expectations