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 Great site Kenny. Technical Analysis written in a straightforward way so that everyone understands. There's only a small few who get it consistantly correct and you are certainly in that group. Chris
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# Elliott Wave Basics Explained - Answers

## Elliott Wave Basics Explained-  Answers

Welcome to the Elliott Wave Basics Explained answers page for the Traders Day Trading Elliott Wave quiz.

Q1. How many waves does an impulse wave subdivide into?

A1.   5

Q2. What is the maximum retracement level for a wave 2?

A2.    100%, The origin of wave 1.

Q3. Who is considered to be the leading authority on Elliott Wave Theory?

A3.   Elliott Wave International

Q4. What is the most important Fibonacci ratio?

A4.  0.618,  The Golden ratio.

Q5. How does a triangle subdivide?

A5.   3-3-3-3-3,  Each internal wave subdivides into 3 smaller waves labeled a,b,c,d,e

Q6. What is the most important factor in wave recognition?

A6. The internal construction of each wave. Does it subdivide into 3 waves or 5?

Q7. What is the next number in this Fibonacci sequence 5, 8, 13, 21, ?

A7.   34 ,  (13+21)

Q8. Which impulse wave is never the shortest?

A8.  Wave  3 is never the shortest . Either wave 1 or wave 5 (or both) must be shorter.

Q9. How do we label a 3 wave zigzag?

A9.  a,b,c

Q10. Could a wave 2 be a triangle?

A10. No, Triangles always occur in the position immediately prior to the final move or as the final move in a combination wave.

How did you do....10/10?

As you can see , there is nothing difficult about learning Elliott Wave. It is quite simply a case of applying some straightforward guidelines with a handful of very clearly defined rules.

Successful Elliott Wave trading and investing is never about calling all the moves, it is about using the theory to help you identify high value trading opportunities with as low a risk to you capital as possible. The more you can learn and understand of the mechanics of the Wave Principle, then more often that these trading opportunities will present themselves to you.

You have only just begun to learn the power and complexity of Elliott Wave Basics Analysis. So, don't let your Elliott wave education end here

We discuss Elliott Wave Theory in much more detail, here at TradersDayTrading.com but you can also learn a lot more through Elliott Wave International's free Club EWI. Follow this link to get free access to the Basic Tutorial: 10 lessons on The Elliott Wave Principle and learn how to use this valuable tool in your own trading and investing.

It is completely free and you will find an extensive library of educational materials in there to help you get the most out of this unique technical analysis tool including....