In an impulse, some additional rules apply. Wave 3 must be an impulse wave itself. Also wave 4 cannot enter the price territory of wave 1. There are very small exceptions to the wave 4 rule in an impulse. In leveraged markets, price may temporarily violate wave 1 price territory. In a cash market, this rule cannot be broken. A "temporary" violation is obviously subjective and … [Read more...] about The Incredible Impulse
Rules
The Unbreakable Rules of Motive Waves
Motive waves advance the trend of larger degree. Motive waves are always actionary and are always "fives". Each motive wave contains 3 actionary subwaves (1,3,5) and 2 reactionary subwaves (2,4). There are two motive wave patterns; impulse and diagonal. There are some rules that cannot be broken that govern all motive waves. Firstly, wave 2 cannot retrace 100% of wave 1. Wave 3 … [Read more...] about The Unbreakable Rules of Motive Waves