THE ELLIOTT WAVE
According to Elliott a rising stock market unfolds in five-wave/three-wave pattern and forms one complete bull market /bear market cycle of eight waves (1-3-5-B). The five-wave upward movement is called an impulse wave and the counter trend movement — a corrective wave. Waves 1, 3, 5 can subdivide into five waves of smaller scale. Corrective waves 2 and 4 can form three smaller waves each too. Impulse subwaves are numbered (1-2-3-4-5). Corrective subwaves are lettered (A,B,C). Thus waves in any series can be subdivided and resubdivided into waves of smaller degree or expanded into waves of larger degree.
The larger scale pattern
Vocabulary
ou to unfold — развертываться
i impulse — импульс, побуждение
ei scale — масштаб
se to expand — расширять
