Median Line Analytics – Basic Applications – Corrections
TradingMotives has developed methods to apply Median Line Analytics to corrections. The main reasons for this are:
- corrections occur prior to and after trends
- if you know when a correction is likely to end, you can focus on the necessary planning to trade the emerging trend
- If you use Median Line Analytics to identify the start of a significant trend, the trade entry points can often be determined where risk is minimal.
Analytics on P0-P1-P2 to find P3
The simplest corrections use P0-P1-P2 to help find P3 (where P3 is the end of a simple correction).
This is an example of a correction that occurred against a strong uptrend. This type of correction (zigzag) was also tradeable in this timeframe 9and lower), it is counter-trend and the bigger trade commenced when the correction completed at red P3 (which was P4, or wave 4, on a larger timeframe).
Median Line Analytics on Daily – Basic Applications – Corrections
This daily chart shows more detail about the correction and the changes in price behavior as the correction completed.
TradingMotives has developed methodologies to apply Median Line Analytics to all corrections defined using the Elliott wave principle, including complex combinations.
Median Line Analytics – Education Modules
If you are not familiar with Median Lines, these education modules have been designed to provide some basic knowledge and terminology used with Median Line Analytics.
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