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Elliott Wave Rules and Guidelines -- Wave 4 Should Not Overlap Wave 1


Elliott Wave Rules and Guidelines
WAVE 4 SHOULD NOT OVERLAP WAVE 1
(By Marc Rinehart)
Elliott Wave Theory in its simplest form defines a series of impulse and corrective price patterns
as a wave sequence consisting of five general waves trending in either an up or down direction.
Within a general five-wave sequence there are guidelines designed to help you better wave
count, calculate or predict wave relationships. One guideline is referred to as the “Wave 4, Wave
1 Overlap Rule.” This rule states for a valid five-wave sequence to occur Wave 1 cannot overlap
any Wave 4 profit-taking pullback.

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