Guideline of Equality
Elliott Wave Theory glossary · Rule Of Alternation & Channeling Guidelines
Definition
When Wave 3 is the extended wave, Wave 5 tends to approximately equal Wave 1 in length. Common target projection.
Guideline of Equality in plain English
Elliott Wave says prices move in a repeating five-wave shape: three pushes in the trend's direction (waves 1, 3, 5) with two small pullbacks (2, 4). Usually one of those pushes is the 'extended' (much longer) one — and when wave 3 is the giant, this guideline says wave 5 will end up about the same size as wave 1. It's like a runner who sprints hardest in the middle lap and then finishes the last lap at roughly the same pace as the first — so if you measured wave 1, you already have a good guess for where wave 5 will stop. Traders use that as a price target, not a guarantee.
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