Elliott Wave Theory Terms
alternation (guideline) In an impulse wave, if wave two is a sharp correction, wave four will usually be a sideways correction, and vice versa.
apex Intersection of the two boundary lines of a contracting triangle or contracting diagonal.
barrier triangle A triangle pattern where the B-D trendline is horizontal and the A-C trendline points in the direction of the main trend at next higher degree.
channeling (guideline) Impulse waves, zigzags, and multiple zigzag patterns will often travel within a trend channel, whose boundaries are defined by parallel upper and lower price trendlines.
combination A sideways pattern composed of two or three corrective patterns linked by intervening X waves.
contracting triangle, A triangle pattern whose A-C and B-D trendlines converge.
corrective wave A three-wave pattern or combination of three-wave patterns.
depth of corrective waves (guideline) Within im- pulse waves, often the corrective waves—especially fourth waves end in the price territory of the previous fourth wave of one lesser degree and usually at that fourth wave’s termination point.
diagonal A motive wave that almost never travels within a parallel trend channel, and whose wave four almost always ends in the price territory of wave one. The four kinds of diagonal waves are: ending contracting: A diagonal whose boundary lines form a wedge-shaped pattern. It can occur only as the fifth wave of an impulse wave and as wave C of flats and zigzags. Subdivides into 3-3-3-3-3, where each wave is a zigzag or multiple zigzag pattern.
leading contracting: A diagonal whose boundary lines form a wedge-shaped pattern. It can occur only as the first wave of an impulse wave and as wave A of zigzag. Subdivides into 3-3-3-3-3, where each wave is a zigzag or multiple zigzag pattern, or 5-3-5-3-5.
ending expanding: An ending diagonal whose boundary lines diverge (quite rare).
leading expanding: A leading diagonal whose boundary lines diverge (quite rare).
double three Combination that comprises two corrective wave patterns, labelled W and Y, linked by a corrective wave pattern labelled X.
double zigzag Sharp wave pattern that comprises two zigzags, labelled W and Y, linked by a corrective wave pattern labelled X.
equality (guideline) In an impulse wave, two of the actionary waves will tend to be equal in terms of time and magnitude.
expanded flat A version of a flat wave pattern where wave B goes beyond the start of wave A, and wave C goes beyond the end of wave A.
expanding triangle, A triangle wave pattern whose A-C and B-D trendlines diverge.
extension Elongated impulse wave whose sub waves, especially the actionary waves, are usually as long or longer than the waves at next higher degree.
failure (see truncation)
flat Sideways corrective wave pattern, labelled A-B-C, that subdivides 3-3-5.
Fibonacci relationships These describe how the length of waves with respect to price and time are mathematically related to each other by the Fibonacci ratio of .618, as well as other Fibonacci numbers.
Golden Section The beginning or end of wave 4 will often divide an impulse wave into the Golden Section (.618 and .382) or two equal parts. This relationship is called a Fibonacci price divider.
guidelines Characteristics of wave formation that usually—but don’t always—occur.
impulse wave A motive wave pattern that subdivides 5-3-5-3-5. It usually travels within a parallel trend channel, and its wave four never ends in the price territory of wave one.
irregular flat (see expanded flat)
motive wave A five-wave pattern that makes progress in the direction of the main trend, where wave two always retraces less than 100 percent of wave one, and wave three can never be the shortest wave. The two kinds of motive wave are impulse and diagonal.
orthodox top (or bottom) Price level that represents the end of the wave pattern.
post-triangle thrust measurement After a tri- angle ends, the next wave, which is usually sharp and fast, is called a thrust. The post-triangle thrust measurement, which is calculated by applying the width of the triangle to the end of wave E, estimates the expected minimum distance travelled of that thrust.
regular flat A flat wave pattern where wave B terminates at about the start of wave A, and wave C ends just slightly past the end of wave A.
right look When wave patterns conform to certain shapes, proportions, and trendlines, they are said to have the “right look.”
rules Characteristics of wave formation that always occur.
running flat A flat wave pattern where wave B ter- minates well beyond the start of wave A, and wave C ends prior to the end of wave A.
running triangle, A contracting triangle where wave B terminates beyond the start of wave A.
sharp corrective wave A corrective wave pattern that usually forms a relatively steep angle and never registers a new price extreme beyond the previous wave that it is retracing.
sideways corrective wave A corrective wave pat- tern that is usually relatively horizontal in shape, and, before terminating, usually records a new price extreme beyond the previous wave that it is retracing.
third-of-a-third impulse wave Normally the most powerful segment of an impulse wave, because it is the third wave of five waves that make up the third wave of the impulse.
three Often used as a synonym for a corrective wave, because almost all corrective waves consist of three waves.
throw-over When wave five of an impulse wave terminates beyond the corresponding trendline of a parallel trend channel, or when wave five of a contracting diagonal terminates beyond the wave one-three trendline.
triangle A sideways corrective pattern, labelled A-B-C-D-E, that subdivides 3-3-3-3-3, where the initial sub waves are all zigzags or multiple zigzag patterns.
triple three Combination pattern that comprises three corrective wave patterns, labelled W, Y, and Z, linked by corrective wave patterns labelled X (quite rare).
triple zigzag Sharp wave pattern that comprises three zigzags, labelled W, Y, and Z, linked by corrective wave patterns labelled X.
truncation When wave five of a motive wave fails to exceed the end of wave three, or when wave C of a zigzag fails to go beyond the end of wave A.
width of a contracting or barrier triangle Equals the length of a vertical line that connects the A-C and B-D trendlines at the origin of wave A of the triangle.
width of an expanding triangle Equals the length of a vertical line that connects the A-C and B-D trend- lines at the end of wave E of the triangle.
zigzag Sharp corrective wave pattern, labelled A-B-C, that subdivides 5-3-5.
