Acceleration Channel
Elliott Wave Theory glossary · Rule Of Alternation & Channeling Guidelines
Definition
A trend channel constructed after Waves 1–4 are complete by drawing a baseline through the Wave 2 low and the Wave 4 low, then a parallel line through the Wave 3 peak. Wave 5 is projected to terminate at or near the upper parallel; a Wave 5 that falls well short (underthrow) warns of a possible truncation.
Acceleration Channel in plain English
Elliott Wave Theory says big price trends move in a repeating pattern of five waves: three pushes forward (Waves 1, 3, 5) and two pullbacks (Waves 2, 4). An acceleration channel is just a pair of parallel guide-rails you draw once the first four waves are done, to guess where the final push (Wave 5) will stop. You connect the bottoms of the two pullbacks to make a baseline, then draw a parallel line touching the top of Wave 3 — and Wave 5 usually finishes near that upper rail. Think of a runner's lane: if the final sprinter can't even reach the finish line painted at the top, that weakness ('underthrow') is a warning the trend may be running out of gas.
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