- The first 5 – wave pattern is called impulsive wave.
- On of the impulsive waves (1,3,5) will always be extended.
- Most of the time wave 3 is extended one.
- The second pattern is called Corrective wave. Leters A, B, C are used instead of numbers.
- 3 corrective wave patterns:
Zig – zags
The wave impulsive (1,3,5) is created of smaller 12345 waves.
The wave corrective (2,4) is created of smaller ABC waves.
1) Wave 3 can never be the shortest impulsive wave.
2) Wave 2 can never go beyond the start of wave 1.
3) Wave 4 can never cross wave 1. Deviation is allowed in over leveraged markets such as Crypto.