medium · Elliott Wave Theory ewt-core
Within a developing impulse, wave 1 of a lower degree is itself an impulse and wave 4 of that same degree overlaps it. An analyst argues this is fine because 'the diagonal exception allows overlap.'
For this defense to be legitimate, which condition must additionally hold?
- The overlapping structure must be the very first wave (a leading diagonal) or the very last wave (an ending diagonal) of the larger sequence, not a middle wave
- The overlap is permitted in any impulse wave position at all, provided wave 3 still remains the longest wave and wave 2 never retraces beyond the origin point of wave 1
- The structure must subdivide 5-3-5-3-5 in sequence, since diagonals require every one of the five sub-waves to form a complete impulsive structure
- The overlap is only valid if wave 4 alternates sharply in form and character with wave 2, since the guideline of alternation is what licenses the diagonal exception here
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