β A diagonal always subdivides into five waves. β Wave 2 never goes beyond the start of wave 1. β Wave 3 always goes beyond the end of wave 1. β Wave 4 never moves beyond the end of wave 2. β Wave 4 always ends within the price territory of wave 1 (overlap). β An ending diagonal always appears as wave 5 of an or wave C of a zigzag or . β A leading diagonal always appears as wave 1 of an or wave A of a zigzag. β Waves 1, 2, 3, 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags. β In a leading diagonal, wave 5 always ends beyond the end of wave 3.
β Waves 1, 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be (all zigzags or all ). β Within an , if wave 1 is a diagonal, wave 3 is likely to be extended. β Within an , wave 5 is unlikely to be a diagonal if wave 3 is not extended. β A leading diagonal in the wave one position is typically followed by a zigzag retracement of 78.6%.
β In the contracting variety, wave 3 is always shorter than wave 1, wave 4 is always shorter than wave 2, and wave 5 is always shorter than wave 3. β Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves 1 and 3.
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β In the contracting variety, wave 5 usually ends beyond the end of wave 3. (Failure to do so is called a truncation.) β In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3. (Ending beyond that line is called a throw-over. β In the contracting variety, wave 3 may be equal .618 to .786 the length of wave 1, and wave 5 may be equal .618 to .786 the length of wave 3.
β In the expanding variety, wave 3 is always longer than wave 1, wave 4 is always longer than wave 2, and wave 5 is always longer than wave 3. β Going forward in time, a line connecting the ends of waves 2 and 4 diverges from with the line connecting the ends of waves 1 and 3. β Wave 5 always goes beyond the end of wave 3.
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β Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave. β In the expanding variety, wave 3 may be equal to 1.618 the length of wave 1, and wave 5 may be equal to 1.618 the length of wave 3. β In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3.
Can we expect lading expanding diagonal as a wave 2 of impulse wave in major index (not a part of wave 2 but full leading expanding diagonal as a wave 2)?
TradeWaves-EWA
β
@djguru282, No. The diagonal can only appear as wave 1, wave 5, wave A of the zigzag, wave C of the zigzag, wave C of the flat.