The Elliott Wave Patterns (Motive Waves)

Motive Waves (moving with the larger trend):
Impulsive or Motive waves always move with the larger trend, consist of five waves, and are
labelled 1-2-3-4-5.

1.Impulse: (IM)
An Impulse is a five-wave pattern labelled 1-2-3-4-5 moving in the direction of the larger trend
1) Wave 1 must itself be an Impulse or a Leading Diagonal pattern.
2) Wave 2 can be any corrective pattern except a Triangle.
3) No part of wave 2 can retrace more than 100% of wave 1.
4) Wave 3 must be an Impulse.
5) Wave 3 must be longer than wave 2 by price.
6) Wave 4 can be any corrective pattern.
7) Waves 2 and 4 cannot overlap.
8) Wave 5 must be an Impulse or an Ending Diagonal.
9) Wave 5 must be >= 70% of wave 4 by price.
10) Wave 3 must never be the shortest by price when compared to waves 1 and 5.

2.Diagonal – also known as a Diagonal Triangle (Leading LD and Ending ED):
A Diagonal is a common 5-wave motive pattern labelled 1-2-3-4-5 that moves with the larger
trend. Diagonals move within two contracting channel lines drawn from waves 1 to 3, and from
waves 2 to 4. There exist two types of Diagonals: Leading Diagonals (LD) and Ending Diagonals
(ED). They have a different internal structure and are seen in different positions within the larger
degree pattern. Ending Diagonals are much more common than Leading Diagonals.

1) Diagonals must move within two contracting channel lines

2) Channel lines must converge, slope in the same direction and not be horizontal.

3) Wave 1 of a LD is either an IM or a LD
4) Wave 1 of an ED is a Zigzag, Double or Triple Zigzag.
5) Wave 2 may be any corrective pattern except a Triangle.
6) Wave 2 is never longer than Wave 1 by price.
7) Wave 3 of a LD must be an IM.
8) Wave 3 of an ED is a Zigzag, Double or Triple Zigzag.
9) Wave 3 is always greater than Wave 2 by price.
10) Wave 4 may be any corrective pattern.
11) Waves 2 and 4 must overlap.
12) Wave 5 of an ED is a Zigzag, Double or Triple Zigzag.
13) Wave 5 of a LD is either an IM or ED.
14) Wave 3 must not be shorter by price than both Waves 1 and 5
15) Wave 5 must be more than 50% of Wave 4 by price.
16) Wave 5 is never the longest by price when compared with Wave 1 and Wave 3.
17) Wave 5 is never longer than Wave 3 by price.