Replies to post #230 on Elliott Wave Principle

[rayrohn]

Impulse wave

Description

Impulses are always composed of five waves, labeled 1,2,3,4,5. Waves 1, 3 and 5 are themselves each impulsive patterns and are approximately equal in length. Waves 2 and 4 on the contrary are always corrective patterns.

Rules and guidelines

The most important rules and guidelines are:

o Wave 2 cannot be longer in price than wave 1, and it must not go beyond the origin of wave 1.
o Wave 3 is never the shortest when compared to waves 1 and 5.
o Wave 4 cannot overlap wave 1, except in diagonal triangles and sometimes in wave 1 or A waves, but never in a third wave. In most cases there should not be an overlap between wave 1 and A.
o As a guideline the third wave shows the greatest momentum, except when the fifth is the extended wave.
o Wave 5 must exceed the end of wave 3.
o As a guideline the internal wave structure should show alternation, which means different kind of corrective structures in wave 2 and 4.

In which wave

Impulse patterns occur in waves 1, 3, 5 and in waves A and C of a correction( this correction could be a wave 2, 4 or a wave B, D, E or wave X).