Single Extended Impulsive Wave

Elliott's Single Extended Impulsive Wave

Wave (2) should be related to Wave (1).

Wave 2 should be related to Wave 1.

Wave 3 should be related to Wave 1.

Wave 4 should be related to Wave 3.

Wave 5 should be related to a ratio of the beginning of Wave 1 to the end of Wave 3.

Wave (3) should be related to Wave (1).

Note: Therefore the target in Wave 5 should end at a projection of Wave (1).

Wave (4) should be related to Wave (3).

Wave (5) should be related to a ratio of the beginning of Wave (1) to the end of Wave (3).

The Modified Impulsive Wave

Wave c in Wave (i) should be related to Wave a.

Wave (ii) should be related to Wave (i).

Wave (iii) should be related to Wave (i).

Within Wave (iii), Wave c should be related to Wave a and match the target in Wave (iii).

Wave (iv) should be related to Wave (iii).

Wave (v) should be related to a ratio of the beginning of Wave (i) to the end of Wave (iii).

Within Wave (v), Wave c should be related to Wave a and match the target in Wave (v).

There is little difference between the two, as all subsequent waves must be related to the prior Wave(s) in the sequence. However, what you will find in general is that many Elliotticians will hail the natural Fibonacci element to the wave structure and how it is therefore a natural development of waves, but will rarely actually observe them. Effectively it makes forecasting a hit-or-miss affair. This was something I could never accept.

I will not state that there are perfect relationships in all circumstances, but in general I find them very common and this provides an excellent tool for forecasting and generating more accurate support and resistance levels. I shall present this in more detail in Chapter 4.