Overlap Test
Elliott Wave Theory glossary · Elliott Wave Theory
Definition
Diagnostic comparing Wave 4 and Wave 1 price ranges. Overlap invalidates a standard impulse (indicates diagonal).
Overlap Test in plain English
The overlap test is just the quick check an analyst runs to see whether Wave 4 has stepped into Wave 1's price range — a simple yes-or-no comparison of the two price zones. If they overlap, you can rule out a standard impulse and lean toward it being a diagonal instead. It's like glancing at two puzzle pieces to see if they touch: the answer instantly tells you which pattern you're actually holding. Fast to do, but it can completely change how you label the move.
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