Elliott Wave (rules-based)

The Elliott Wave indicator provides a rules-based framework for visually identifying potential Elliott Wave patterns, including 1–5 impulse structures and optional A–B–C corrective moves. This tool automates the detection of pivot highs and lows to help traders objectively visualize price structure and market cycles.

Usage

The indicator can be used to identify trend phases and potential reversal points based on classical Elliott Wave theory. By default, it detects 5-wave impulse sequences and labels them 1 through 5 on the chart. Once an impulse sequence is completed, the indicator can optionally monitor for A–B–C corrective patterns.

To use the indicator effectively:

• Trend Identification: Look for 1-5 labels to identify the strength and direction of a trend.
• Correction Monitoring: Enable the A-B-C detection to identify potential entry points after a trend exhaustion.
• Volatility Filtering: Adjust the ATR or percentage filters to ensure the ZigZag connections capture meaningful price swings rather than minor market noise.

Details

The script utilizes a configurable ZigZag logic based on user-defined pivot lengths. It filters these pivots using either Average True Range (ATR) or a fixed percentage threshold to ensure only significant moves are analyzed.

The pattern detection follows specific rules:

• Impulse Waves: Validates that peaks and troughs follow the required progression for a bullish or bearish 5-wave move.
• A-B-C Corrections: Monitors the three subsequent pivots following a wave 5 to check if they satisfy corrective structural requirements.
• Visuals: It uses dynamic drawing objects (lines and labels) to highlight the structure, with automatic cleaning of old drawings to maintain chart performance.

Settings

Detection

• Pivot Left/Right: Sets the number of bars required to the left and right of a high or low to confirm a pivot point.
• Use ATR filter for swing threshold?: Determines whether to use ATR-based volatility or percentage change to filter swings.
• ATR Length: The lookback period for the ATR calculation.
• ATR Multiplier: Multiplier applied to ATR to determine the minimum price move required for a new swing.
• Min % swing (if ATR off): The minimum percentage change required for a new swing if the ATR filter is disabled.

Display & Logic

• Max bars back for drawing: Limits how far back the indicator will render lines and labels to optimize performance.
• Attempt A–B–C after 5 waves?: Enables the detection and labeling of corrective patterns following an impulse.
• Show ZigZag Lines?: Toggles the visibility of the underlying ZigZag structure connecting the pivots.

FAQ

How do I access Elliott Wave?

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

Can I use this on any timeframe?

Yes, the script is designed to work on all symbols and timeframes, though higher timeframes often yield cleaner Elliott structures.

Does the indicator repaint?

The indicator uses pivots which require "right bars" to confirm; therefore, labels and lines appear once the specific pivot is confirmed by the price action following it.