Two scenarios for the S&P500 index for 2022-2023

More theory





A diagonal triangle is always subdivided into five waves.
An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat.

A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag.


Waves 1, 2, 3, 4, and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags.

Wave 2 never goes beyond the start of wave 1.

Wave 3 always goes beyond the end of wave 1.

Wave 4 never moves beyond the start of wave 3.

Wave 4 always ends within the price territory of wave 1.

Going forward in time, a line connecting the ends of waves 2 and 4 converges towards (in the contracting variety) or diverges from (in the expanding variety) a line connecting the ends of waves 1 and 3.

In a leading diagonal, wave 5 always ends beyond the end of wave 3.

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.

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.

In the expanding variety, wave 5 always ends beyond the end of wave 3.

Best regards EXCAVO

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