The square white button on the bottom left corner (see image above) of WaveStructure charts is your shortcut to open the text analysis panel. The panel provides detailed analysis of the selected chart with visual representation of the active wave count and text-based comments to help subscribers who are new to Elliott Wave and Action/Reaction line methods.
On the chart above you can see the text analysis panel and its contents. The panel is split in two panes - upper for the Up counts (colored green) and lower for the Down counts (colored blue). Let's look at the Up count analysis by taking into consideration both the panel text and chart structures:
The ultimate bottom on the chart is marked with Wave 0 (green). This marks the beginning of a new Up count which will try to identify a complete 5+3 (1-to-5 and then A, B and C) wave setup while it is unfolding in real time. The 5-wave cycle is completed with Wave 5 (green) pushing price to the highest level visible on the chart. Note that RSI price/momentum divergence is identified for the Waves 3 and 5 (green) meaning that upside buy pressure is weakening and price is likely to reverse. Right after the high of Wave 5 price begins to roll over and eventually breaches the (green) 0-4 line, as marked by the circle. The 0-4 line break is one of the most important signals that we follow on WaveStructure. Following the break price reaches up to touch the 0-4 line from below and naturally finds resistance. The move down is the last active wave count (Wave A, green) which signals to us that a corrective upside move is to be expected in the next wave - Wave B.
The Down count analysis (in blue) is quite identical to the one above. As you can see the patterns we follow are simple and repeatable. WaveStructure's goal is to identify and mark them on the charts while notifying its subscribers of their occurrence simultaneously.