# Elliott Wave Elliott Wave is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Elliott Wave detects and labels impulse and corrective wave counts automatically from zigzag pivots, drawing Fibonacci retracements where corrections may rebound. Invalidated counts switch to dotted or dashed lines, and alerts fire on new or broken patterns. Wave analysis without hand-labeling every swing. - Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 6, 2023. - Access: free. - Concepts: [Impulse](https://www.luxalgo.com/library/concept/impulse/) (primary), [Corrective Wave](https://www.luxalgo.com/library/concept/corrective-wave/), [Zigzag Structure](https://www.luxalgo.com/library/concept/zigzag-structure/), [Fib Wave Relationships](https://www.luxalgo.com/library/concept/fib-wave-relationships/), [Elliott Wave Theory](https://www.luxalgo.com/library/concept/elliott-wave-theory/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1ej1001wvhsgdxpzhinu - Page: https://www.luxalgo.com/library/indicator/elliott-wave/ **Elliott Wave** detects and labels wave counts automatically, marking five-wave [impulses](https://www.luxalgo.com/library/concept/impulse/) (1–5) and three-wave corrections (A–C) as they develop from zigzag pivots, then drawing Fibonacci retracements where a correction may rebound. The counts stay honest: patterns that break the rules are visibly struck. Invalidated motive counts turn dotted, corrective ones dashed, and a red cross prints when price breaks out of the corrective box while it is still projected: downward after a bullish count, upward after a bearish one. ## How to Trade the Elliott Wave? - **Confirmed 5-wave pattern (1 → 5)**: a completed motive sequence, which can itself be read as a larger Wave 1 in the next degree. - **Fibonacci zones after the count**: the script's retracement lines mark areas where the corrective phase might turn. - **Rule violations**: Wave 2 retracing past Wave 1's origin or Wave 4 overlapping Wave 1's territory invalidates the count. A struck pattern is information, not noise. - **New extremes**: while Wave 5 keeps extending, the count's end point moves with it; after a completed (a)(b)(c) correction, a small circle marks the next swing if it clears the Wave (5) extreme, flagging a possible new Wave 1. Pivots come from the ZigZag engine, so the source and length settings decide how much movement earns a label. The result is a running count under [Elliott Wave theory](https://www.luxalgo.com/library/concept/elliott-wave-theory/) without hand-labeling a single swing. ## Elliott Wave Settings - **High**: uses the high, the close, or the maximum of open/close as the upper pivot source. - **Low**: uses the low; with either other option the lower source follows the High setting, reading the close when High is set to close and the minimum of open/close otherwise. - **ZigZag 1 / 2 / 3 Length** (defaults 4, 8 and 16): three wave degrees counted side by side, each with its own toggle and color. Each length is how many preceding bars must confirm a pivot: with length 8, a pivot high requires the eight preceding highs to sit lower, plus a lower high on the next bar. Larger values yield fewer, larger waves. ## Frequently Asked Questions ### What invalidates a wave count? Three hard rules are enforced: a Wave 2 that gives back more than all of Wave 1 voids the count, and so do Wave 4 crossing back into Wave 1's price span and a Wave 3 that is the shortest of waves 1, 3 and 5. The count also requires Wave 5 to end beyond Wave 3. If the rule set itself is what you want on screen, the [Elliott Hard Rules](https://www.luxalgo.com/library/indicator/elliott-hard-rules/) build isolates exactly those constraints. ### Does the indicator send alerts? Yes. Notifications cover new motive and corrective patterns in both directions, invalidated patterns, and the possible start of a new motive wave, so counts can be monitored without watching every bar. ### How can I access the Elliott Wave indicator? It costs nothing. The build is part of the free LuxAlgo Library, and wave counts can be stress-tested in Quant, our coding agent, right here on the page. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Delta ZigZag](https://www.luxalgo.com/library/indicator/delta-zigzag/) (Zigzag Structure): markdown at https://www.luxalgo.com/library/indicator/delta-zigzag.md - [Price Simplification](https://www.luxalgo.com/library/indicator/price-simplification/) (Zigzag Structure): markdown at https://www.luxalgo.com/library/indicator/price-simplification.md - [Truncation](https://www.luxalgo.com/library/indicator/truncation/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/truncation.md - [Elliott Hard Rules](https://www.luxalgo.com/library/indicator/elliott-hard-rules/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/elliott-hard-rules.md - [Triangle](https://www.luxalgo.com/library/indicator/triangle/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/triangle.md - [Wave Degree Hierarchy](https://www.luxalgo.com/library/indicator/wave-degree-hierarchy/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/wave-degree-hierarchy.md - [Diagonals](https://www.luxalgo.com/library/indicator/diagonals/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/diagonals.md - [Motive Wave](https://www.luxalgo.com/library/indicator/motive-wave/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/motive-wave.md --- Source: https://www.luxalgo.com/library/indicator/elliott-wave/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/