Elliott Wave Analysis

The Elliott Wave Analysis indicator provides a structured framework for visualizing price movements through the lens of Elliott Wave theory by utilizing multi-layered trendlines based on Fibonacci-spaced Supertrends. This tool helps traders objectify chart analysis and identify potential wave structures across various timeframes.

Usage

The indicator displays multiple dynamic trend lines that represent different wave degrees. Users can identify trend shifts and potential wave completions when price interacts with these levels.

• Timeframe Correlation: The indicator is optimized for the 1-hour timeframe, but it automatically adjusts its logic for other periods. For example, on a 1-minute chart, the lines represent "Submicro" waves, while on a Weekly chart, they represent "Intermediate" waves.
• Signals: Small triangles (Buy/Sell 1, 2, 3) appear when price crosses specific trend thresholds. These signals indicate potential entries aligned with the underlying wave degrees.
• Trend Confirmation: Use the different line thicknesses and colors to determine the hierarchy of the current trend. Thicker lines represent higher-degree cycles.

Details

The Elliott Wave Analysis tool is constructed using a modified Supertrend logic. Instead of standard multipliers, it employs a Fibonacci sequence (1, 3, 5, 8, 13, 21, 55, 144) applied to the Average True Range (ATR). This spacing mimics the natural proportions found in Elliott Wave theory.

The indicator dynamically reassigns colors and line importance based on the active timeframe:

• 1 min: Submicro
• 5 min: Micro
• 15 min: Subminuette
• 1 hour: Minuette (Main Mode)
• 4 hours: Minute
• Day: Minor
• Week: Intermediate
• Month: Primary

Settings

• Minuette Color: Sets the color for the Minuette/Submicro/Subminuette wave degrees depending on the timeframe.
• Minute Color: Sets the color for the Minute/Micro/Minor wave degrees depending on the timeframe.
• Minor Color: Sets the color for the Minor/Subminuette/Intermediate wave degrees depending on the timeframe.
• ATR Filter: A boolean toggle that adds an extra layer of ATR-based validation to the generated buy and sell signals to reduce noise.

FAQ

How do I interpret the different colored lines?

The lines represent different degrees of trend volatility based on Fibonacci multipliers. The colors shift based on your chart's timeframe to help you maintain perspective on which wave degree you are currently analyzing.

Can I use this without knowing Elliott Wave theory?

Yes, the indicator functions as a multi-layered trend-following system. While it is designed to visualize wave structures, its signals and trendlines can be used for standard support/resistance and trend exhaustion strategies.

How can I access Elliott Wave Analysis?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.