Elliott Wave 1 Theory
Elliott Wave (1) is the first or initial swing off a important high or low.
Elliott Wave (1) is rarely obvious at its inception. When the first wave of a new bull market begins, the fundamental news is almost universally negative. The previous trend is considered still strongly in force. Fundamental analysts continue to revise their earnings estimates lower; the economy probably does not look strong. Sentiment surveys are decidedly bearish, put options are in vogue, and implied volatility in the options market is high. Volume might increase a bit as prices rise, but not by enough to alert many technical analysts.
As such, Wave (1) is the initial swing off an important high or low.