Elliot Wave Chapter 1: The Overall Cycle

Rule is rule
• Impulse wave subdivide into 5 waves. In the chart, the impulse move is subdivided as (1), (2), (3), (4), (5) in minor degree
Wave 1, 3, and 5 subdivision are impulse. The subdivision in this case is 1, 2, 3, 4, and 5 in minute degree.
• Wave 2 can’t retrace more than the beginning of wave 1
• Wave 3 can not be the shortest wave of the three impulse waves, namely wave 1, 3, and 5
• Wave 4 does not overlap with the price territory of wave 1
• Wave 5 needs to end with momentum divergence