Median Line Analytics – Education (Part 5)

Median Line Analytics – Applied to the Elliott Wave Principle

The Elliott Wave Principle was developed during the 1930’s after the evolution of Median Lines. The Elliott Wave Principle uses guidelines for channels which can only be applied to Impulse waves and to zigzags. Median Line Analytics can be applied to all Elliott Wave motive and corrective wave patterns which is a huge advantage relative to the Elliott wave channeling guidelines. I’m not knocking those guidelines. They are useful, but waves 1, 2 and 3 need to be complete before you can apply the guideline to help find wave 4 and that is the first time they can be applied.

As an alternative, the first Median Line can be applied as soon as wave 2 is complete and this can be used to help find the terminations of waves 3, 4 and 5.

The reference that I use for Elliott waves is “Elliott Wave Principle” by Frost and Prechter.

Watch to See Examples of Median Lines Applied to Elliott Waves

This short video shows simple applications of Median Line Analytics to the Elliott Wave Principle.

The origin of Median Lines for technical analysis of market charts is more than a century old, yet the methods still work as well today as they did back then.

TradingMotives also apply Fibonacci extensions to help monitor the length of swings and compare this with retracement and expansion guidelines from the Elliott wave principle.