Elliott waves are build from smaller identical waves. These are commonly referred to as “fractals”. The nature has this a fractal character as well. The smaller degree waves are on their turn build of even smaller elliott waves and this process is repeated untill tick-charts. There are 9 degrees of subwaves identified by Ralph Nelson Elliott.
A common mistake of elliott wave is to get lost in the different degrees. A good feeling for balance and proportion is the only solution for this mistake. Some guidelines are given in the table below.
Overview of elliott wave degrees
| ID | Degree | Approximate time frame |
| 1 | Grand supercycle | Multi century |
| 2 | Supercycle | Multi decade |
| 3 | Cycle | One year to multiple years |
| 4 | Primary | Few months to a couple of years |
| 5 | Intermediate | Weeks to months |
| 6 | Minor | Weeks to months |
| 7 | Minute | Days |
| 8 | Minuette | Hours |
| 9 | Subminuette | Minutes to hours |
Counting the elliott waves
Corrective waves are labeled with letters (sometimes capital letters) and impulsive waves with number. All waves must be categorized into a certain degree, although it is not possible to directly identify the right degree when the waves unfolds. Identifying the right degree is not a science, it is directly related to both price and time. Time will always tell the right degree in hindsight.