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Impulse Patterns - Forex Trading

Impulse Patterns

Description


Impulses are always composed of five waves, labeled 1,2,3,4,5. Waves 1, 3, and 5 are themselves each impulsive pattern and are approximately equal in length. Waves 2 and 4 on the contrary are always corrective patterns.

Rules and guidelines


The most important rules and guidelines are:


Wave 2 cannot be longer in price than wave 1, and it must 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 in diagonal triangles and sometimes in wave 1 or
A waves, but never in a third wave. In most cases there should not be an overlap between
wave 1 and A.

As a guideline the third wave shows the greatest momentum, except when the fifth is the
extended wave.
• Wave 5 must exceed the end of wave 3.
• As a guideline the internal wave structure should show alternation, which means different
kind of corrective structures in wave 2 and 4.

In which wave


Impulse patterns occur in waves 1, 3, 5 and in waves A and C of a correction( this correction could be a
wave 2, 4 or a wave B, D, E or wave X).


Internal structure


It is composed of five waves. The internal structure of these waves is 5-3-5-3-5. Note that the mentioned
3s are corrective waves, which should be composed of 5 waves in a corrective triangle.

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