RULES & GUIDELINES
OF ELLIOTT WAVE
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INTRODUCTION
How To Use:
This reference material is designed to be used while building an elliott count,
and contains a full description of both the simple & complex patterns in the
method, with all rules and guidelines required to analyze the price action of
the financial instrument.
Even the analyst who has committed these to memory will sometimes have
to refer to the pattern descriptions. For the learner, this is an invaluable tool in
assisting the process. Having either a hard copy, or a handy bookmarked link
will save lots of time while building a count allowing the user to cross-check
each part of the analysis to ensure a rules compliant outcome is achieved.
All diagrams are for illustration purposes only and do not imply necessary
subdivision or wave relationships. These sheets are solely for informational
and educational purposes and does not constitute financial advice.
@Tradedevils
/Tradedevil
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IMPULSE
Subwave
WAVE (1)
WAVE (2)
WAVE (3)
WAVE (4)
WAVE (5)
Mode
Motive
Corrective
Motive
Corrective
Motive
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
Possible
Subdividing
Patterns
Impulse
Leading Diagonal
Zigzag
Flat
Combination
(Sideways)
Multi Zigzag
(sharp)
Rules
Wave 2 must not retrace past the origin of wave 1
Wave 3 must not be the shortest & must terminate past
the end of wave 1
Wave 4 must not retrace past the end of wave 1
Guidelines
Reactionary waves 2 & 4 often alternate in corrective style
Wave 3 will usually exit the ‘base channel’ (shown)
Impulse waves are typically contained within the parallel
channel of the 2-4 trendline and wave 3 end
Wave 5 can end within the range of wave 3 (truncate)
Wave 3 in the subdivision of wave 3 is usually the steepest
Wave 4 usually terminates in the range of wave 4 of 3
Impulse Only
Flat
Zigzag
Triangle
Combination
(Sideways)
Multi Zigzag
(sharp)
Impulse
Ending Diagonal
Common Wave relationships (guidelines only)
Wave 2v1 retracement – 50% 61.8% 78.6% 88.7%
Wave 3v1 fib extension – 161.8% 261.8%
Wave 4v3 retracement – 23.6% 38.2% 50%
Wave 5 = 38.2% or 61.8% of 0-3, or Wave 5 = Wave 1
When extended, Wave 5 = 161.8% of 0-3
Position in Simple Patterns:
Impulse – 1/3/5
Leading Diagonal 1/3/5
Zigzag – A/C
Flat – C
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LEADING DIAGONAL
Subwave
WAVE (1)
WAVE (2)
WAVE (3)
WAVE (4)
WAVE (5)
Mode
Corrective or Motive
Corrective
Corrective or
Motive
Corrective
Corrective or Motive
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
Possible
Subdividing
Patterns
Impulse
ZigZag
Multi-ZigZag
ZigZag
Multi-ZigZag
Rules
Expanding Variety
Wave 1 must be shorter than wave 3
Wave 3 must be shorter than wave 5
Wave 2 must be shorter than wave 4
1-3 and 2-4 trendlines must diverge
Contracting Variety
Wave 1 must be longer than wave 3
Wave 3 must be longer than wave 5
Wave 2 must be longer than wave 4
1-3 and 2-4 trendlines must converge
Common Rules
Wave 2 must not retrace past the origin of wave 1
Wave 3 must move past the end of wave 1
Wave 5 must terminate past the end of wave 3
Wave 4 must not retrace past the end of wave 2
Wave 4 must terminate within the range of wave 2
Impulse
ZigZag
ZigZag
Multi-ZigZag
Multi-ZigZag
Impulse
ZigZag
Multi-ZigZag
Structure:
Either 5-3-5-3-5 or 3-3-3-3-3
NB, must be one structure or the other – cannot be any
hybrid version
Position in Simple Patterns:
Impulse – Wave 1
ZigZag Wave A
Guidelines
If wave 1 of an impulse is a diagonal, expect wave 3 to extend
Wave 5 of an expanding diagonal often finishes before
meeting the 1-3 trendline
Wave 5 of a contracting diagonal can end on a volume spike
and a throw over
Wave 2 usually retraces 61.8%, 78.6%, or 88.7% of wave 1
Wave 4 usually retraces between 50% - 61.8% in the
expanding variety, and between 38% - 50% in the contracting
variety of the length of 0-3
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ENDING DIAGONAL
Subwave
WAVE (1)
WAVE (2)
WAVE (3)
WAVE (4)
WAVE (5)
Mode
Corrective
Corrective
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
Possible
Subdividing
Patterns
ZigZag
Multi-ZigZag
ZigZag
Multi-ZigZag
ZigZag
Multi-ZigZag
ZigZag
Multi-ZigZag
ZigZag
Multi-ZigZag
Rules
Expanding Variety
Wave 1 must be shorter than wave 3
Wave 3 must be shorter than wave 5
Wave 2 must be shorter than wave 4
1-3 and 2-4 trendlines must diverge
Contracting Variety
Wave 1 must be longer than wave 3
Wave 3 must be longer than wave 5
Wave 2 must be longer than wave 4
1-3 and 2-4 trendlines must converge
Common
Wave 2 must not retrace past the origin of wave 1
Wave 3 must move past the end of wave 1
Wave 4 must not retrace past the end of wave 2
Wave 4 must terminate in the range of wave 2
Structure: 3-3-3-3-3
Position in Simple Patterns:
Impulse – Wave 5
Zigzag – Wave C
Flat – Wave C
Guidelines
If wave 3 of an impulse is not extended, wave 5 is less likely
to be a diagonal
Wave 5 of an expanding diagonal often finishes before
meeting the 1-3 trendline
Wave 5 of a contracting diagonal can end on a volume spike
and a throwover
Volume in an ending diagonal tends to diminish as it
progresses, but can end with a spike near the termination
point if there is a throw over of the 1-3 trendline (contracting
or expanding variety)
Wave 5 in an Ending Diagonal (contracting version)
sometimes terminates within the range of wave 3 (forbidden
if the entire diagonal is a truncation)
Wave 2 usually retraces 61.8%, 78.6%, or 88.7% of wave 1
Wave 4 usually retraces between 50% - 61.8% in the
expanding variety, and between 38.2% - 50% in the
contracting variety, the length of the origin wave 1 to the
end of wave 3
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ZIG ZAG
Subwave
WAVE (A)
WAVE (B)
WAVE (C)
Mode
Motive
Corrective
Motive
Function
Actionary
Reactionary
Actionary
Impulse
Leading Diagonal
Flat – Zigzag – Triangle
Sideways Combination
Multi ZigZag
Possible
Subdividing
Patterns
Rules
Wave B must not retrace past the origin of wave A
Structure: 5-3-5
Position in Simple Patterns:
Impulse – Wave 2/4
Diagonal – Wave 1/2/3/4/5
Zigzag – Wave B
Flat – Wave A/B
Triangle – Wave A/B/C/D/E
Impulse
Ending Diagonal
Guidelines
Wave C is usually related to wave A by 1:1, 1:1.272, 1:1.618, or
other fibonacci multiples
Zigzags are usually contained within parallel lines (shown), and
can terminate with either a throw over (shown), or a throw
under of the lower parallel trendline
If wave B is a triangle, it tends to retrace between 38.2% and
50% of wave A
If wave B is a zigzag, it tends to retrace between 50% and 78.6%
of wave A
Corrective Style: Sharp
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FLAT
Subwave
WAVE (A)
WAVE (B)
WAVE (C)
Mode
Corrective
Corrective
Motive
Function
Actionary
Reactionary
Actionary
Possible
Subdividing
ZigZag
Multi-Zigzag
Flat
Sideways Combination
ZigZag
Impulse
Ending Diagonal
Patterns
Multi ZigZag
Rules
Wave A must never be a triangle
Wave B must retrace at least 88.7% of wave A
Wave C must be a motive wave
Nomenclature
If wave B retraces more than 105% of wave A, and wave C
terminates past the end of wave A, the pattern is called an
Expanded Flat
If wave B retraces at least 100% of wave A, and wave C
terminates within the range of wave A, then the pattern is
called a Running Flat
Otherwise, the pattern is called a Regular Flat
Position in Simple Patterns:
Impulse – Wave 2 / 4
Zigzag – Wave B
Flat – Wave A
Structure: 3-3-5
Corrective Style: Sideways
Guidelines
Wave C is usually related to wave A by 1:1, 1:1.272, 1:1.618, or other
Fibonacci multiples
Wave C occasionally terminates within the range of wave A
Wave B should not be more than twice the length of wave A
Flats are typically found before or after extended waves
Wave C is expected to be steeper than wave A and has no
maximum length
Wave B is usually between 100% and 138.2% of wave A
Flats are usually contained within a parallel channel (shown),
with wave C terminating slightly before or after the lower
channel trendline
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CONTRACTING TRIANGLE
Subwave
WAVE (A)
WAVE (B)
WAVE (C)
WAVE (D)
WAVE (E)
Mode
Corrective
Corrective
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
ZigZag
Multi ZigZag *
ZigZag
Multi ZigZag *
Triangle *
ZigZag
Multi ZigZag *
Triangle *
Possible
Subdividing
Patterns
ZigZag
ZigZag
Multi ZigZag * Multi ZigZag *
Triangle *
Triangle *
* only possible in 1 of the 5 subwaves
Rules
Wave C must not retrace past the end of wave A
Wave D must not retrace past the end of wave B
Wave E must not retrace past the end of wave C
Triangles must terminate in the range of the wave
that is being corrected
Structure (All corrective mode patterns are considered 3):
3-3-3-3-3
NB, one and only one of the five waves of a triangle may be a
multi zigzag or a triangle
Corrective Style: Sideways
Position in Simple Patterns:
Impulse — Wave 4
Zigzag — Wave B
Triangle— B/C/D/E
Guidelines
Wave C is the most common wave that subdivides into a
complex zigzag
Wave E is the most common wave that subdivides into a triangle
Same-directional waves usually relate by a Fibonacci multiple
of 0.618, 0.382, or 0.786
Each wave usually retraces at least 55% of the preceding wave
If waves B and D terminate around the same level, it is a Barrier
Triangle
If wave B terminates past the origin of wave A (shown), it is a
Running Triangle
Triangles usually form with declining average volume and volatility
After wave 4 triangles, wave 5 either swiftly travels the
distance of the widest part of the triangle (at the origin), known
as ‘Post-triangle thrust’ (PTT) or makes a long protracted move
The apex of B/D & A/C trendlines often marks a turning point in
the market
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EXPANDING TRIANGLE
Subwave
WAVE (A)
WAVE (B)
WAVE (C)
WAVE (D)
WAVE (E)
Mode
Corrective
Corrective
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
ZigZag
Multi ZigZag *
ZigZag
Multi ZigZag *
ZigZag
Multi ZigZag *
ZigZag
Multi ZigZag *
ZigZag
Multi ZigZag *
Possible
Subdividing
Patterns
* only possible in 1 of the 5 subwaves
Rules
Waves C, D, and E each must terminate past the end of the
previous same-directional subwave (A, B, and C respectively)
Waves B, C, and D must retrace at least 100% of the previous
wave, but no more than 150%
Structure: 3-3-3-3-3
NB, one and only one of the five waves of a triangle may be a
multi zigzag
Corrective Style: Sideways
Guidelines
Wave C is the most common wave that subdivides into a
complex zigzag
A triangle subwave has never been seen in an Expanding
Triangle
At least one of waves C, D, or E relate to their prior same
directional wave by a Fibonacci multiple of 1.618 (eg Wave
C=1.618A)
Triangles usually form with declining average volume and
volatility
There is no “thrust” measurement for an Expanding Triangle
Position in Simple Patterns:
Impulse – Wave 4
Zigzag – Wave B
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SIDEWAYS DOUBLE COMBINATION
Subwave
WAVE (W)
WAVE (X)
WAVE (Y)
Mode
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Possible
Subdividing
Patterns
Flat
Zigzag *
Flat
ZigZag
Multi ZigZag
Flat
Zigzag *
Triangle
* only possible in 1 of the actionary waves
Position in Simple Patterns:
Impulse – Wave 2 / 4
Zigzag – Wave B
Flat – Wave A
Structure: 3-3-3
Corrective Style: Sideways
Guidelines
Wave W typically retraces adequately in price for the
entire correction
Wave X should retrace at least 90% of wave W and be no
more than 2x as long
Wave X is often a zigzag, forming a sharp ‘sucker’s
rally’ (or decline in a bear market)
Sideways combos are ‘continuation patterns’ - thus, the
minimum 90% wave X is a strong guideline as this indicates
strength in the continuing direction
Typically, the actionary waves in combinations will
alternate, increasing in complexity over time
The actionary waves typically relate by a 1 : 1 relationship,
or by 1 : 0.618
Expanding triangles have never been witnessed in a
sideways combination
Swing counts for complex corrections is 3+4 for each
‘extension’, with overlapping swings
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SIDEWAYS TRIPLE COMBINATION
Subwave
WAVE (W)
WAVE (X)
WAVE (Y)
WAVE (X)
WAVE (Z)
Mode
Corrective
Corrective
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
Flat
Zigzag
Flat
Zigzag *
Flat
Zigzag
Flat
Zigzag *
Triangle
Possible
Subdividing
Patterns
Flat
Zigzag *
Multi ZigZag
Multi ZigZag
* only possible in 1 of the actionary waves
Position in Simple Patterns:
Impulse – Wave 2 / 4
Zigzag – Wave B
Flat – Wave A
Structure: 3-3-3-3-3
Corrective Style: Sideways
Guidelines
Wave W typically retraces adequately in price for the
entire correction
Wave X should retrace at least 90% of wave W and be no
more than 2x as long
Wave X is often a zigzag, forming a sharp ‘sucker’s rally’
(or decline in a bear market)
Sideways combos are ‘continuation patterns’ - thus, the
minimum 90% wave X is a strong guideline as this
indicates strength in the continuing direction
Typically, the actionary waves in combinations will
alternate, increasing in complexity over time
The actionary waves typically relate by a 1:1 relationship,
or by 1 : 0.618
Expanding triangles have never been witnessed in a
sideways combination
Swing counts for complex corrections is 3+4 for each
‘extension’, with overlapping swings
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SHARP DOUBLE ZIG ZAG
Subwave
WAVE (W)
WAVE (X)
WAVE (Y)
Mode
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Zigzag
Flat – Zigzag –
Triangle
Sideways
Combination
Multi ZigZag
Zigzag
Possible
Subdividing
Patterns
Rules
Wave X must not retrace past the origin of wave W
Structure: 3-3-3
Position in Simple Patterns:
Impulse – Wave 2/4
Diagonal – Wave 1/2/3/4/5
Zigzag – Wave B
Flat – Wave A/B
Triangle – Wave A/B/C/D/E
Guidelines
Wave X should break the trendline formed between the
origin of W and the end of B of W (shown)
Wave X often retraces between 38.2% and 50% of wave W
The entire pattern can be channelled from the origin of
wave W, to the end of wave X, with a parallel line through
the termination point of wave W
Actionary waves typically relate by 1:1 ratio, or by a
Fibonacci multiple, commonly 1:1.272, 1:1.618, 1:0.618, or
1:0.786 etc
Swing counts for complex corrections is 3+4 for each
‘extension’, with overlapping swings
Corrective Style: Sharp
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SHARP TRIPLE ZIG ZAG
B
(X)
C
A
A
B
C
(X)
B
C
(W)
A
A
B
B
C
A
(Y)
C
(Z)
Subwave
WAVE (W)
WAVE (X)
WAVE (Y)
WAVE (X2)
WAVE (Z)
Mode
Corrective
Corrective
Corrective
Corrective
Corrective
Function
Actionary
Reactionary
Actionary
Reactionary
Actionary
Zigzag
ZigZag
Flat
Sideways
Combination
Multi ZigZag
Zigzag
Zigzag
Flat
Triangle
Sideways
Combination
Multi ZigZag
Zigzag
Possible
Subdividing
Patterns
Rules
Wave X must not retrace past the origin of wave W
Wave X2 must not retrace past the origin of wave Y
Structure: 3-3-3-3-3
Position in Simple Patterns:
Impulse – Wave 2/4
Diagonal – Wave 1/2/3/4/5
Zigzag – Wave B
Flat – Wave A/B
Triangle – Wave A/B/C/D/E
Corrective Style: Sharp
Guidelines
Wave X should break the trendline formed between the
origin of W and the end of B of W
Wave X2 should break the trendline formed between the
origin of Y and the end of B of Y
Both waves X often retrace between 38.2% and 50% of the
prior actionary wave
The entire pattern can be channelled from the origin of
wave W, to the end of wave X2, with a parallel line through
the termination point of wave Y (shown)
Actionary waves typically relate by 1:1 ratio, or by a
Fibonacci multiple, commonly 1:1.272, 1:1.618, 1:0.618, or
1:0.786 etc
Swing counts for complex corrections is 3+4 for each
‘extension’, with overlapping swings
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