Overview: What is Count Verification?
In Elliott Wave analysis, it is important to verify, after constructing a count, whether the count is correct from multiple perspectives. Fixating on a single count risks misreading market movements, so checks are performed from both the rules (absolute constraints) and guidelines (tendencies) perspectives.
As a result of verification, a count with many guideline incompatibilities is judged “not necessarily wrong, but having too many doubts,” and a different count alternative should be sought. By examining multiple count alternatives in parallel and ranking their merits by their degree of fit with rules and guidelines, more accurate wave analysis becomes possible.
Verification Checklist
Once a count is constructed, verify it from the following perspectives. Green (✓ conformance checks) are items that must be satisfied; Red (✗ deviation checks) are items where any incompatibility raises doubts.
Detailed Points
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Counts with many guideline incompatibilities should be judged as “not definitively wrong, but having too many doubts”
A rule violation is an absolute sign that the count is wrong, but a guideline deviation, while “not necessarily wrong,” should be judged with the understanding that the more incompatibilities there are, the stronger the doubts. Counts deviating from multiple guidelines should be considered for revision.
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If a wave form you want to count as an impulse can also be counted by the rules as a corrective wave, give weight to that possibility
Counting with the wish that “this should be a motive wave (impulse)” makes it easy to misread. The safe approach is: if the same wave form can also be counted by the rules as a corrective wave (zigzag, flat, etc.), give weight to the corrective wave possibility.
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Lay out multiple count alternatives and rank them by their degree of fit with rules and guidelines
Examine multiple count alternatives in parallel and compare how well each fits with the rules and guidelines. The practical approach is to keep the count with the highest degree of fit as the main scenario, the next one as the sub-scenario, and update the rankings as the market moves.
Related Terms
Summary
The Count Verification Method is a technique of verifying whether a constructed count is correct from multiple angles against rules and guidelines. It comprehensively checks from items that must be satisfied — such as the three major rules of an impulse and subwave composition — to guideline perspectives such as wave 2 depth, alternation, the previous fourth wave, and channeling.
Counts with many guideline incompatibilities are judged as “having too many doubts” and a different count alternative is sought. The practical approach is to lay out multiple count alternatives and rank them by their degree of fit.
