Elliott Wave Theory signal engine. Detects swing points through Zigzag, matches 5-wave impulse and 3-wave corrective structures, validates them with Fibonacci wave relationships, and generates trend-top / correction-complete signals. Pure in-house pandas implementation.
Classic wave theory based on the core assumption that markets move in fractal wave structures:
| Structure | Wave Count | Direction | Meaning |
|---|---|---|---|
| Impulse wave | 5 waves (1-2-3-4-5) | Trend-following | Main trend direction |
| Corrective wave | 3 waves (A-B-C) | Counter-trend | Pullback correction |
| Parameter | Default | Description |
|---|---|---|
| swing_window | 10 | Rolling window for swing-point detection |
| fib_tolerance | 0.15 | Tolerance for Fibonacci ratios |
| min_wave_bars | 5 | Minimum number of candles per wave |
Wave theory is highly subjective, and automatic counting can yield multiple interpretations. This implementation uses a "simplest effective single interpretation" strategy and would rather miss signals than misclassify them.
pip install pandas numpy requests
1 = long, -1 = short, 0 = stand aside