Overlap
Elliott Wave Theory glossary · Core Axioms & Motive Wave Rules
Definition
The condition where Wave 4 enters the price range of Wave 1. Prohibited in standard impulse waves; required in diagonal triangles.
Overlap in plain English
Overlap is when Wave 4 backslides far enough to trespass into the price territory that Wave 1 already covered. Picture five people climbing a staircase where each is supposed to end up higher than the last — if the fourth climber slips back down onto a step the first climber stood on, that's overlap. In a normal, healthy impulse this is forbidden (it signals the trend isn't as clean as you thought), but in a special pattern called a diagonal triangle it's actually required. So the same event is a red flag in one context and a fingerprint in another.
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