The most important rules and guidelines are:
• Wave 2 cannot be longer in price distance than wave 1, so it should not go beyond the
origin of wave 1.
• Wave 3 is never the shortest when compared to waves 1 and 5.
• Wave 4 cannot overlap wave 1, except for diagonal triangles and sometimes in waves 1
or A, but never in a third wave. There should not be overlap between wave 1 and A.
• Wave 5 fails to go beyond the end of wave 3.
• As a guideline the third wave shows the greatest momentum.
• As a guideline the internal wave structure should show alternation, which means different
kinds of corrective structures.