Tool
Elliott Wave
market.elliott_wave
Inputs
The list of swing pivots (highs and lows) to label, typically the output of a zigzag or swing-point detector. Each pivot is an alternating turning point in price.
Outputs
A bundle describing the detected Elliott structure: the wave count, each labelled wave (1-2-3-4-5 or A-B-C) with its pivots, and the projected Fibonacci targets for the wave currently in progress.
Elliott Wave reads a sequence of swing pivots and labels them as a wave structure — a five-wave move with the trend (1-2-3-4-5) or a three-wave correction against it (A-B-C). It tells you which wave the market is likely in right now, so you can anticipate the next leg.
How it works
Feed it the pivot points from a zigzag or swing detector. It groups those pivots into Elliott patterns, checking that each wave keeps a valid shape and that the retracements and extensions land near the classic Fibonacci ratios you enable. It emits a bundle describing the detected wave count, each labelled wave, and the projected ratios for the wave in progress.
Modes
Mode options
Only reports a wave structure once the pattern is complete and validated, so labels stay fixed and won't be revised.
When to use: Pick this for stable, non-repainting signals — trade only fully-formed counts.
Reports the best wave count as it forms in real time, including the wave still in progress — labels may shift as new pivots print.
When to use: Pick this to anticipate the next leg early, accepting that an incomplete count can be revised.
Wave set options
Lets the tool decide whether the current swings best fit a five-wave motive sequence or a three-wave correction, picking whichever validates.
When to use: Use when you don't know the larger context and want the detector to choose the most likely pattern.
Searches only for the five-wave impulse that moves with the trend: waves 1, 3 and 5 advance, waves 2 and 4 pull back.
When to use: Use when you know a trending impulse is underway and want to ride waves 3 or 5.
Searches only for the three-wave correction that moves against the larger trend: A and C in the correction's direction, B a partial bounce back.
When to use: Use after an impulse completes, to time the end of the pullback before the next trend leg.
Wave count options
Ratio set options
Enables the 0.236 Fibonacci level when validating retracements — the shallowest pullback, typical of a strong wave 4 in a powerful trend.
When to use: Add this when allowing very shallow corrections inside a steep impulse.
Enables the 0.382 Fibonacci level — a common wave 4 retracement of wave 3 and a typical shallow wave 2.
When to use: Add this to accept the classic 38.2% pullback that wave 4 often makes.
Enables the 0.5 (50%) Fibonacci level — a frequent wave 2 retracement of wave 1.
When to use: Add this to accept a half-way pullback, common for wave 2.
Enables the 0.618 golden-ratio level — the textbook wave 2 retracement of wave 1 and the deep limit a healthy correction respects.
When to use: Add this to accept the classic 61.8% wave 2 pullback that defines most valid impulses.
Enables the 0.786 Fibonacci level — a deep retracement that still leaves the count valid, often the edge of an optimal-trade zone.
When to use: Add this to allow a deep but not exhausted pullback before the next leg.
Enables the 1.0 extension — wave equality, where one wave projects to the same length as another (a common wave C = wave A target).
When to use: Add this to project an A-B-C correction where C equals A.
Enables the 1.272 extension — a modest projection beyond the prior wave, a frequent minimum target for an extended wave 5 or wave C.
When to use: Add this to set a conservative extension target for the wave in progress.
Enables the 1.618 golden extension — the textbook length of wave 3 relative to wave 1, and a primary target for an extended fifth wave.
When to use: Add this to project a wave 3 target, the most reliable Elliott extension.
Enables the 2.0 extension — a 200% projection, where an extended wave reaches twice the length of its reference wave.
When to use: Add this to allow a strongly extended third or fifth wave target.
Enables the 2.618 extension — the far golden projection, a target for the most powerful extended impulses and the typical limit before exhaustion.
When to use: Add this to project the upper target of a strongly extended wave 3 or 5.
Configuration
Whether to report only complete, validated wave counts (confirmed) or the best live count including the wave still forming (latest).
Which Elliott pattern family to detect: the five-wave motive impulse, the three-wave A-B-C correction, or auto to let the tool choose whichever validates.
How many waves the structure must contain to count as valid — from 3 (a corrective A-B-C) up to 9 (an impulse with extensions and sub-waves). Range: 3–9 waves; 3 = corrective, 5 = standard impulse, 7–9 = impulse with diagonal or sub-divided legs.
Which Fibonacci ratios to accept when validating retracements and projecting extensions. Enable several at once; the detector treats a wave as valid when its proportion lands near any enabled ratio.
When on, requires the pattern to respect the diagonal (wedge) rules — e.g. overlapping waves in an ending diagonal — rejecting counts that violate them. When off, only the core impulse/corrective rules are checked.
How many bars of pivot history to scan when grouping swings into waves. Larger values find higher-degree (longer) wave structures; smaller values track faster, lower-degree counts.
Connects to
Examples
- Detect a confirmed five-wave motive impulse and enter on the wave 4 pullback toward the 0.382 retracement.
- Use latest mode with wave_set=corrective to spot the end of an A-B-C pullback and re-join the trend.
- Project a wave 3 target by enabling the 1.618 extension ratio once waves 1 and 2 are in place.
Common mistakes
- Trading in latest mode without expecting revisions — a live, incomplete count can re-label as new pivots print.
- Feeding raw price instead of clean swing pivots — noisy input produces invalid or constantly-shifting wave counts.
- Enabling no extension ratios, then expecting wave targets — projections only appear for the ratios you turn on in ratio_set.