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.