Trading
Drawdown
QUICK DEFINITION
Drawdown in Elliott Wave Theory: The peak-to-trough decline in portfolio value before a new high is reached. Tracking drawdown helps wave analysts assess whether their position sizing and stop-loss strategy are appropriately calibrated.
What Drawdown Means
The peak-to-trough decline in portfolio value before a new high is reached. Tracking drawdown helps wave analysts assess whether their position sizing and stop-loss strategy are appropriately calibrated.
Where You'll See It
Drawdown appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the trading family of Elliott Wave concepts and shows up most often when analysts are translating a wave count into an actual trade setup with entry, target, and invalidation.
LEARN MORE
- → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
- → Elliott Wave Cheat Sheet — the 3 absolute rules and 6 Fibonacci relationships
- → Our Methodology — how Artavest analysts count waves on 108 US instruments