Elliott Waves Quiz 1

1. What are the basic building blocks of Elliott Wave Theory?

• Trends and reversals

• Impulse and corrective waves

• Peaks and troughs

• Support and resistance levels

Which wave in an impulsive sequence is usually the strongest and longest?

• Wave 1

• Wave 2

• Wave 3

• Wave 4

In Elliott Wave Theory, what is the "wave principle" related to?

• Predicting exact price levels

• Identifying repetitive patterns in market movements

• Forecasting economic indicators

• Calculating moving averages

What is the primary characteristic of a corrective wave?

• It always moves in the direction of the larger trend.

• It moves against the trend established by the previous impulse wave.

• It is always shorter than an impulsive wave.

• It follows a strict pattern without variations.

What is the role of Fibonacci ratios in Elliott Wave Theory?

• They are used to measure the strength of the trend.

• They help in predicting the potential retracement levels of waves.

• They determine the market's momentum.

• They are irrelevant to Elliott Wave Theory.

When an Elliott Wave cycle completes, what typically follows?

• A continuation of the same trend

• A complete reversal of the trend

• A period of sideways movement

• The start of a new cycle

How many waves are in a complete Elliott Wave cycle?

• 5 waves

• 6 waves

• 8 waves

• 10 waves

Which waves are known as "corrective waves"?

• Waves 1, 3, and 5

• Waves 2 and 4

• Waves 1 and 2

• Waves 4 and 5

What pattern does a zigzag correction typically follow?

• 5-3-5

• 3-3-5

• 5-5-5

• 3-5-3

In an impulsive wave pattern, which waves are the motive waves?

• 1, 3, and 5

• 2, 4, and 6

• 1, 2, and 3

• 4, 5, and 6