Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises

A Summary of Rules and Guidelines

The patterns have been listed for you to study. Now we need to summarize the rules and guidelines. Again, these may not be all of them, but for a beginner level they are complete.

Rules

Impulse Waves:

1. Wave 3 may not be the shortest as compared to impulse waves 1, 3, and 5. This does not mean wave 3 has to be the longest.

2. Wave ‘2’ may not retrace beyond the distance travelled in wave ‘1’. Another way to say this is wave ‘2’ cannot break the start of wave ‘1’.

3. Wave 4 may not overlap any part of the distance traveled by wave 1. There is one exception: the very rare leading diagonal triangle, type 2, that serves as the first impulse wave in a new trend or counter-trend move. This is rarely encountered outside ...