ELLIOTT WAVE STRUCTURE AND RULES FOR IMPULSE
Elliott Wave -An impulse wave always subdivides into five waves.
And like any Waveform in a motive mode impulses always denote by numbers.
Now let’s look at the internal structure of the impulse the first, third, and fifth waves of inspiration always form in the motive mode.
In other words, all actionary waves of impulse form in a motive mode.
Further, the second and fourth impulse waves always form 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, and the fourth is a corrective wave in the fifth form in the motive mode.
What is the Rule of the wave 2 in Elliott Wave Pattern?
The value of the wave measure by its projection on the vertical axis that is the value of wave 1 is the length of the vertical segment.
Usually, the value of the wave measure in points, so wave 2 is always less than wave 1.
Means that in its construction wave two never goes below.
This level 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.
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 straight a line drawn through top stream 1.
And I would like to add that the third wave is very often the most significant in impulse further.
The end of a wave for always ends above the end of wave 1.
What is the Rule of wave 4?
In other words and its construction wave 4, always ends above this horizontal line which draws through the top of wave 1.
And Wave 4 never moves beyond the end of wave 1.
Wave 5 always moves beyond the end of wave 3.
In its construction wave 5, always rises above this level that is above the straight a line drawn through top stream 3.
And I would like to add that the third wave is very often the most significant in impulse further, the end of a wave always ends above the end of wave 3.
Wave 5 is normal in size, and it is a significant rule that wave 3 is never the shortest.
And we compare wave 3 with wave one and wave five.
And wave three is the smallest among them and keep this in mind.
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 form 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 one, and in its construction, it never goes above this level wave 3.
Still moves beyond the end of wave one.
Wave four never moves beyond the end of wave one.
And wave five can be any size and be sure to check that wave.
Three is not the smallest compared to wave one and wave 5.
Continued till Next Post.
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