What Is Impulse Wave In Elliott Wave Theory

The impulse wave in Elliott Wave Theory is the wave that pushes the prices in the same direction as the trend at one larger degree. It’s the action wave.

While the corrective wave is the reaction to the first wave. Therefore, the corrective wave moves in the opposite direction of the main trend.

The impulse wave is composed of 5 waves according to certain conditions & rules.

^Description:

Impulse waves are always composed of five waves, labeled 1,2,3,4,5. Waves 1,3 & 5 are in the direction of the main trend.

Whereas, waves 2 & 4 are in the opposite direction.

^{Rules & guidelines:}

1. Wave 1 of the impulse wave is either impulse or leading diagonal.
2. Wave 2 must not go beyond the origin of wave 1. (The wave 2 retraces 61.8 Fibonacci of wave 1).
3. Wave 3 must not go beyond the top of wave 1.
4. Wave 2 and 4 must alternate in the correction pattern, and Wave 2 can’t be in a triangular form.
5. Wave 4 can’t overlap wave 1.
6. Wave 3 is never the shortest when compared to waves 1 and 5.
7. The internal structure of wave 3 must be impulse and can’t be diagonal.
8. Wave 1 can be leading diagonal or wave 5 can be ending diagonal, but there must not be 2 diagonal wave in a one wave.
9. Wave 5 must not be less than 70 % in length of wave 4.

^{In which wave:}

The impulse wave occurs in waves 1, 3 and 5 and in waves a and c.

^{Internal Structure:}

The impulse wave is composed of five waves. The internal structure of these impulse waves is 5-3-5-3-5.

Submitted January 01, 2022 at 03:05AM by elliottwavemonitor https://ift.tt/3eHKENm