hard · Elliott Wave Theory
In an ending diagonal forming as a fifth wave, an analyst notes that wave 4 overlaps wave 1 and concludes the structure is therefore not a motive wave at all.
Why is this conclusion mistaken under orthodox Elliott Wave theory?
- Diagonals are a recognized class of motive wave in which wave-4/wave-1 overlap is REQUIRED-or-expected, so overlap confirms rather than refutes the diagonal's motive status.
- Diagonals are corrective patterns, so the analyst is right that overlap disqualifies them from being motive.
- Overlap is irrelevant because ending diagonals are defined solely by wave 3 being the shortest wave, not by any overlap condition.
- The conclusion is mistaken only if the diagonal is a leading diagonal; in an ending diagonal overlap genuinely is prohibited.
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