Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

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What is the basic five-wave sequence in the Elliott Wave Theory called?

Correction wave

Motive wave

The basic five-wave sequence in Elliott Wave Theory is referred to as a motive wave. In this context, a motive wave consists of five distinct waves that move in the direction of the overall trend. This is a foundational concept in Elliott Wave Theory, where the motive wave typically unfolds in an upward or downward direction and is followed by a corrective phase.

The term "motive wave" signifies that the wave is promoting the extension of the trend—a key component of Elliott Wave analysis. This five-wave structure is crucial for traders and analysts, as it helps them identify market trends and potential reversal points. Understanding the characteristics of motive waves is essential for applying Elliott Wave Theory in practice, allowing market technicians to anticipate price movements and strategize their trading accordingly.

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Impulse wave

Retracement wave

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