This screen finds five upward Elliott impulse waves: three advancing waves separated by two pullbacks. 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. A completed fifth wave often marks the end of the advance, so traders watch for an A-B-C correction to follow.
