In essence, Elliott Waves describes price movements as alternating between impulsive phases that establish the direction of the trend and corrective phases that oppose the direction of the trend.
It is a form of technical analysis that is based on investors sentiment and psychology. In a complete Elliott Wave cycle, impulse waves have 5 waves and correction waves have 3 waves.
The Elliott Wave Principle says that collective investor psychology, or crowd psychology, moves between optimism and pessimism in natural sequences. These mood swings create price patterns evidenced on a graph.
One of the best qualities of TradingView is that it has a lot of tools that are simple and ready to use, and Elliott Wave indicators is one of them. TradingView hosts over 100 Elliott Wave scripts, mainly zigzag ones. We have tested them and decided on the top 5 best indicators you can use for free:
The ability to easily see Highs and Lows and its simple customisability makes the ZigZag++ Indicator one of the top 5 Elliott Wave indicators in TradingView.
This indicator provides signals related to an Elliott Wave’s 3rd wave. The ability of the indicator to compare volumes between waves 1, 2, and 3 makes this indicator a very useful Elliott Wave tool.
The Momentum-based ZigZag is great for anyone looking for a simple, straightforward Elliott Wave indicator because it provides entry points and directions. The Momentum-based ZigZag does not repaint, meaning it does not recalculate the bars, the downside being that a messy market could result in a lot of contradictory signal bars.
The 2nd best indicator we found on TradingView is the Zig Zag Channels Indicator. This indicator comes with trend support in the form of channel lines making it fast, precise and easy to use.
This is the best Elliott Wave indicator available on TradingView because it allows you to easily spot trends, is highly customisable, and it also comes with an integrated bar count, for a truly complete overview of your chart.