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Modern Elliott Wave patterns

In our Modern Rules observations and analysis we have defined extra patterns that are mostly hybrid patterns derived from the known patterns that have existed from the beginning. In addition, we allow for the occurrence of more patterns in some waves. For example, wave 1 may also contain a diagonal1, diagonal2 and impulse 2 pattern, in addition to the other trend patterns, that a classic interpretation accepts.
I. Trends
a. Impulse 2
Pattern

Modern Elliott Wave Description

An Impulse 2 is an uncommon pattern that resembles a normal impulse considerably. In our daily analysis we allow for a maximum retracement of 51.5% for wave 4 in an impulse or other trend pattern. Of course sometimes the retracement of wave 4 could be 51.6% and an impulse would then be eliminated, in spite of the fact that the limit was exceeded by 0.1% only. Naturally the Elliott Wave does not apply this strictly and the Impulse 2 pattern corrects for this problem. Apart from this, we have witnessed a retracement up to 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!
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 could be composed of 5 waves in a corrective triangle.

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This entry was posted on Tuesday, December 21st, 2010 at 11:11 pm and is filed under forex indicator. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.