Impulse Waves Create Market Trends
Impulse waves are strong trending price moves. Figure 2.1 is a weekly chart of a stock displaying a strong bullish trend. I have drawn three boxes. The boxes help to focus this discussion in several ways. The first wave up in the larger rally develops throughout the first box. We label waves when they are finished at the end of the wave. Not in the middle. Not somewhere near the side of the wave, but by being as precise as possible we label a wave just above the price high or under the price low that completes the wave. It is not always possible, but close enough will never do at any time with this analysis method. There is a lot to learn. Be patient with yourself. It takes time and practice. One of the problems ...
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