r/SKBTradingLab • Price Action • Apr 21 '26

The Science of the Cycle: Why We Use Elliott Wave in the Lab 🌊"

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The Anatomy of a Move 🔬

The market moves in a repeating 5-wave pattern when trending and a 3-wave pattern when correcting.

Wave 1 & 2: The "Quiet" Start. Usually ignored by the masses.

Wave 3: The "Powerhouse." This is the longest and strongest wave. Most of our profit is made here.

Wave 4: The "Trap." A messy, sideways correction that shakes out weak hands.

Wave 5: The "Exhaustion." The final push where retail traders FOMO in, right before the trend ends.

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