medium · Elliott Wave Theory

An impulse is alleged in which wave 1 and wave 5 are nearly equal in length and wave 3 is clearly the longest.

Applying the guideline of alternation together with the rules, which single observation would MOST decisively falsify the impulse label (as opposed to merely being atypical)?

  1. Wave 4 ending below the terminal price of wave 1, producing genuine overlap of the two waves' price territories.
  2. Wave 2 retracing 78.6% of wave 1, which is a deep but rule-permissible retracement.
  3. Wave 2 and wave 4 sharing the same corrective form (e.g., both sharp zigzags), violating only the guideline of alternation.
  4. Wave 5 failing to make a new high beyond wave 3 (a truncated fifth), which remains a valid impulse variant.

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