This screen finds the first four waves of a downward Elliott impulse: two declines, a rebound, and the fourth-wave rebound. Elliott Wave theory, developed by Ralph Nelson Elliott, holds that trends move in five impulse waves in the direction of the trend, followed by three corrective waves, labeled A, B and C. Here the waves are taken from ZigZag swings, which filter out minor price moves. After wave four, traders look for the fifth and final downward wave, which often makes a new low.
