hard · Elliott Wave Theory
An analyst labels a five-wave advance as an impulse where wave 1 is extended, wave 3 is the longest visually, and wave 5 is short.
To confirm this is an impulse and not an ending diagonal, which observation is the decisive discriminator?
- Wave 3 is the longest of the five waves, which by itself proves an impulse since diagonals never have a long wave 3
- The action waves (1, 3, 5) subdivide as five-wave motive structures and wave 4 does not overlap wave 1, neither of which a contracting ending diagonal satisfies
- Wave 5 is short, which is characteristic of impulses and never occurs in ending diagonals
- Wave 2 retraces more than 61.8% of wave 1, a depth that only impulses permit and diagonals forbid
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