An Impulse 2 is an uncommon pattern that resembles a normal impulse considerably. In our daily analysiswe allow for a maximum retracement of 51.5% for wave 4 in an impulse or other trend pattern. Of coursesometimes the retracement of wave 4 could be 51.6% and an impulse would then be eliminated, in spiteof the fact that the limit was exceeded by 0.1% only. Naturally the Elliott Wave does not apply this strictlyand the Impulse 2 pattern corrects for this problem. Apart from this, we have witnessed a retracement upto 62% for a wave 4 frequently in intra day charts.
Rules and guidelines
The same rules and guidelines apply as with a normal impulse except for the following:• Wave 4 is allowed to retrace between 51.5% and 62%, without penetrating the region of wave 1.• As a guideline, wave 4 very often is a Zigzag.
In which wave
Impulse 2 patterns mostly occur in waves 1,A or C, never in a wave 3!
It is composed of five waves. The internal structure of these waves is 5-3-5-3-5. Note that the mentioned3s are corrective waves, which could be composed of 5 waves in a corrective triangle.