Elliott Wave Basics · Lesson 3 of 6

Wave Psychology.

The wave pattern carries a psychological pattern with it. This lesson walks through what each wave feels like, where crowd emotion peaks versus where momentum peaks, and the divergence between feeling and underlying strength that signals major tops.

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Figure III
The full cycle in price and sentiment
Wave Personality
Wave 1
The First Move
Skeptical

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Rule violated: Wave 4 cannot enter Wave 1's territory
Price Momentum Strong Weak Time 1 2 3 4 5 A B C Bearish sentiment divergence
Step 1 of 8

The Pattern Begins

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