Counter-trend movements occur in three-wave structures (A-B-C), such as Zigzags, Flats, and Triangles .
Elliott Wave theory centers on an 8-wave cycle featuring a 5-wave motive phase and a 3-wave correction, governed by three unbreakable rules regarding price retracement and length. Traders apply Fibonacci levels—typically 50% to 61.8% for corrections—to identify potential wave terminations, utilizing patterns like zigzags and triangles for analysis. For a comprehensive guide on counting, see the Scribd Guide Elliott Wave Counting Guide | PDF - Scribd
The "Mento" version of these cheat sheets is particularly valued for its focus on , internal structure, and strict invalidation rules, helping traders identify high-probability setups across various assets like forex, gold, and indices . Core Components of the Mento Cheat Sheet Elliott Wave Cheat Sheet Mento Pdf
Instead of memorizing every rule, use these visual shortcuts.
| Mode | Wave Structure | Direction | Psychology | | :--- | :--- | :--- | :--- | | | 5 Waves | With the trend | Optimism / Fear of missing out | | Corrective | 3 Waves (or variations) | Against the trend | Uncertainty / Profit-taking | For a comprehensive guide on counting, see the
Removes the need to flip through 500-page trading books to find a specific rule.
✅ – After wave 2 or B confirmation ✅ Stop loss – Beyond the extreme of wave 2 or B ✅ Target 1 – End of wave 3 (1.618 ext.) ✅ Target 2 – End of wave 5 (divergence signal) ✅ Invalidation – Rule break (e.g., wave 2 > start of wave 1) ✅ – After wave 2 or B confirmation
🧠 Wave 3 is never the shortest impulse wave.
Before diving into the cheat sheet, it is crucial to understand the foundation. Developed by Ralph Nelson Elliott in the 1930s, the Elliott Wave Theory suggests that market prices do not move randomly. Instead, they move in repetitive cycles driven by collective investor psychology.