elliott-wave-principle

# Elliott Wave Principle Skill This skill helps you apply the Elliott Wave Principle to analyze financial market price data. It contains reference files with detailed rules, pattern descriptions, and guidelines. ## Quick Start - If the user provides a chart or price data and asks for wave analysis, first determine the trend direction and look for the basic 5‑wave pattern (impulse) followed by a 3‑wave correction. - Use the reference files to verify rules and identify specific patterns. ## Reference Files The following files are available in the `references/` directory. Load them as needed based on the user’s question. - **[basic-principles.md](references/basic-principles.md)** – Fundamental concepts: the 5‑3 wave structure, motive vs. corrective mode, wave degrees, labeling conventions. - **[impulse-waves.md](references/impulse-waves.md)** – Rules for impulse waves (no overlap, wave 3 not shortest, etc.), extensions, truncations, diagonal triangles (ending and leading). - **[corrective-patterns.md](references/corrective-patterns.md)** – Detailed descriptions of zigzags (single, double, triple), flats (regular, expanded, running), triangles (contracting, expanding), and combinations (double/triple threes). - **[guidelines.md](references/guidelines.md)** – Key guidelines: alternation, channeling, volume characteristics, wave personality, and practical application tips. - **[fibonacci-relationships.md](references/fibonacci-relationships.md)** – Fibonacci ratios in wave relationships (retracements, multiples, time sequences), how to apply them for price targets. - **[glossary.md](references/glossary.md)** – Definitions of Elliott Wave terms (e.g., throw‑over, truncation, apex, etc.). ## How to Use This Skill 1. **Understand the user’s request**: Determine if they need wave counting, pattern identification, or explanation of concepts. 2. **Load relevant reference(s)**: For example, if the user asks about a specific corrective pattern, load `corrective-patterns.md`. If they ask about wave counting rules, load `impulse-waves.md` and `basic-principles.md`. 3. **Apply the rules**: Use the information to analyze the provided price data. Remember that the Wave Principle is probabilistic; multiple interpretations may be valid. 4. **Provide reasoning**: Explain your wave count, referencing the rules and guidelines used. ## Important Notes - Always prioritize the **rules** (e.g., wave 3 cannot be shortest, wave 4 cannot overlap wave 1 in an impulse) over guidelines. - When in doubt, consult the glossary for term definitions. - The examples in the reference files illustrate typical patterns; actual market patterns may vary. - For a comprehensive understanding, you may load multiple references. The files are designed to be modular; load only what you need to keep context efficient.