ELLIOTT WAVE STRUCTURE AND RULES FOR IMPULSE

ELLIOTT WAVE STRUCTURE AND RULES FOR IMPULSE

impulse waves

Elliott Wave -An impulse wave always subdivides into five waves.

And like any wave formed in a motive mode impulses are always denoted by numbers.

Now let’s look at the internal structure of the impulse the first, third, and fifth waves of impulse are always formed in the motive mode.

In other words, all actionary waves of impulse are formed in a motive mode.

further, the second and fourth impulse waves are always formed in the corrective mode.

In other words, all reactionary waves of impulse developed in a corrective mode.

So now we see that the first wave in an impulse is a motive wave

the second is a corrective wave.

the third is a motive wave the fourth is a corrective wave

in the fifth is formed in the motive mode.

impulse wave Rule1

  What is the Rule of the wave 2 in Elliott Wave Pattern?

The value of the wave is measured by its projection on

the vertical axis that is the value of wave 1 is the length of this vertical

segment.

Usually, the value of the wave is measured in points so wave 2 is always

less than wave 1.

This means that in its construction wave 2 never goes below this level that is below the horizontal line through the beginning of wave 1.

If wave 2 in its construction goes below this level it means that we do not have

an impulse wave pattern.

impulse waves Rule2

  What is the Rule of the wave 3 Elliott Wave Pattern ?

Wave 3 always moves beyond the end of wave 1.

In its construction wave 3, always rises above this level that is above the horizontal

a line is drawn through the top of wave 1.

And I would like to add that the third wave is very often the largest wave in impulse

further, the end of a wave for always ends above the end of wave 1.

What is the Rule of wave 4?

impulse waves4

In other words and its construction wave 4, always ends

above this horizontal line which is drawn through the top of wave 1.

And Wave 4 never moves beyond the end of wave 1.

impulse Rules5

Wave 5 always moves beyond the end of wave 3.

In its construction wave 5, always rises above this level that is above the horizontal

a line is drawn through the top of wave 3.

And I would like to add that the third wave is very often the largest wave in impulse

further, the end of a wave always ends above the end of wave 3.

Wave 5 is normal in size and the is a very important rule

that wave 3 is never the shortest wave.

And we compare wave 3 with wave 1 and wave 5 and wave 3 is the smallest among them and keep this in mind.

impulse wave Rule6

All the rules applicable to the downward impulse also consists of five waves the

downward impulse has the same wave structure that is the first third and

fifth waves of impulse are formed in the motive mode.

And the second and fourth waves of impulse are formed in the corrective mode wave.

Two is always less than wave 1 and in its construction, it never goes above this level wave 3

always moves beyond the end of wave 1 wave 4 never moves beyond the end of

wave 1 and wave 5 can be any size and be sure to check that wave 3 is not

the smallest compared to wave 1 and wave 5.

 

 

 Continued till Next Post…

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