Elliott Wave By Example - Part 1

There are just three straight forward rules that you need to remember. In a five-wave progressions,

·         Rule 1: Wave 2 can never retrace more than 100% of wave 1.

·         Rule 2: Wave 4 may never end in the price territory of wave 1.

·         Rule 3: Out of the three impulse waves -- 1, 3 and 5 -- wave 3 can never be the shortest.

Wave 2 can never retrace more than 100% of wave 1.

Wave 4 may never end in the price territory of wave 1.

Out of the three impulse waves -- 1, 3 and 5 -- wave 3 can never be the shortest.