A Summary Of The Elliott Wave Principle
Impulse Waves - General Description
1. Impulse waves unfold in a pattern of five waves. A five wave pattern is
always a pare of a larger degree trend,
2. Waves 1, 3 and 5 within a five wave pattern arc themselves impulse
waves of lesser degree and should each sub-divided into a five wave
pattern.
3, Once a five wave pattern completes, the entire sequence should be
corrected by a pattern of either three waves (ABC) or one of a series
of three and five waves known as "complex corrections."
4, Corrective waves within a five wave sequence are waves two and four.
5. One of the impulsive waves will usually extend or be noticeably longer
in price than the other two impulse waves. In the financial markets, the
extended wave is usually wave three. In the commodity markets, the
extended wave is often wave five.
6. The two non-extended waves are frequently close to equality of price
range.