medium · Elliott Wave Theory motive

An analyst labels a rally with the following points: Start at 100.00, Wave 1 peak at 130.00, Wave 2 low at 112.00, Wave 3 peak at 145.00, and Wave 4 low at 128.00.

Why must this count be rejected as a standard impulse?

  1. It violates the rule stating Wave 2 can never retrace more than 61.8% of Wave 1's length
  2. It violates the rule that Wave 3 can never be the shortest of the three motive waves
  3. It violates the rule that Wave 4 must not enter the price territory of Wave 1.
  4. The price move in Wave 3 falls short of the 1.618 Fibonacci extension of Wave 1

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