*Rules*

- An impulse always subdivides into five waves.
- Wave 1 always subdivides into an impulse or (rarely) a diagonal triangle.
- Wave 3 always subdivides into an impulse.
- Wave 5 always subdivides into an impulse or a diagonal triangle.
- Wave 2 always subdivides into a zigzag, flat or combination.
- Wave 4 always subdivides into a zigzag, flat, triangle or combination.
- Wave 2 never moves beyond the start of wave 1.
- Wave 3 always moves beyond the end of wave 1.
- Wave 3 is never the shortest wave.
- Wave 4 never moves beyond the end of wave 1.
- Never are waves 1, 3 and 5 all extended.

*Guidelines*

- Wave 4 will almost always be a different corrective pattern than wave 2.
- Wave 2 is usually a zigzag or zigzag combination.
- Wave 4 is usually a flat, triangle or flat combination.
- Sometimes wave 5 does not move beyond the end of wave 3 (in which case it is called a truncation).
- Wave 5 often ends when meeting or slightly exceeding a line drawn from the end of wave 3 that is parallel to the line connecting the ends of waves 2 and 4, on either arithmetic or semilog scale.
- The center of wave 3 almost always has the steepest slope of any equal period within the parent impulse except that sometimes an early portion of wave 1 (the “kickoff”) will be steeper.
- Wave 1, 3 or 5 is usually extended. (An extension appears “stretched” because its corrective waves are small compared to its impulse waves. It is substantially longer, and contains larger subdivisions, than the non-extended waves).
- Often, the extended subwave is the same number (1, 3 or 5) as the parent wave.
- Rarely do two subwaves extend, although it is typical for waves 3 and 5 both to extend when they are of Cycle or Supercycle degree and within a fifth wave of one degree higher.
- Wave 1 is the least commonly extended wave.
- When wave 3 is extended, waves 1 and 5 tend to have gains related by equality or the Fibonacci ratio.
- When wave 5 is extended, it is often in Fibonacci proportion to the net travel of waves 1 through 3.
- When wave 1 is extended, it is often in Fibonacci proportion to the net travel of waves 3 thorough 5.
- Wave 4 typically ends when it is within the price range of subwave four of 3.
- Wave 4 often subdivides the entire impulse into Fibonacci proportion in time and/or price.

*Rules*

- A diagonal triangle always subdivides into five waves.
- An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat.
- A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag.
- Waves 1, 2, 3, 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags.
- Wave 2 never goes beyond the start of wave 1.
- Wave 3 always goes beyond the end of wave 1.
- Wave 4 never moves beyond the start of wave 3.
- Wave 4 always ends within the price territory of wave 1.
- Going forward in time, a line connecting the ends of waves 2 and 4 converges towards (in the contracting variety) or diverges from (in the expanding variety) a line connecting the ends of waves 1 and 3.
- In a leading diagonal, wave 5 always ends beyond the end of wave 3.
- In the contracting variety, wave 3 is always shorter than wave 1, wave 4 is always shorter than wave 2, and wave 5 is always shorter than wave 3.
- In the expanding variety, wave 3 is always longer than wave 1, wave 4 is always longer than wave 2, and wave 5 is always longer than wave 3.
- In the expanding variety, wave 5 always ends beyond the end of wave 3.

*Guidelines*

- Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave.
- Waves 1, 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses.
- Within an impulse, if wave 1 is a diagonal triangle, wave 3 is likely to be extended.
- Within an impulse, wave 5 is unlikely to be a diagonal triangle if wave 3 is not extended.
- In the contracting variety, wave 5 usually ends beyond the end of wave 3. (Failure to do so is called a truncation.)
- In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3. (Ending beyond that line is called a throw-over.)
- In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3.

* Note: We have found one diagonal triangle in the Dow in which wave four did not reach the price territory of wave one. See Figure 1-18 in *Elliott Wave Principle*.

*Rules*

- A zigzag always subdivides into three waves.
- Wave A always subdivides into an impulse or leading diagonal.
- Wave C always subdivides into an impulse or diagonal triangle.
- Wave B always subdivides into a zigzag, flat, triangle or combination thereof.
- Wave B never moves beyond the start of wave A.

*ZigZag Guidelines*

- Wave A almost always subdivides into an impulse.
- Wave C almost always subdivides into an impulse.
- Wave C is often about the same length as wave A.
- Wave C almost always ends beyond the end of wave A.
- Wave B typically retraces 38 to 79 percent of wave A.
- If wave B is a running triangle, it will typically retrace between 10 and 40 percent of wave A.
- If wave B is a zigzag, it will typically retrace 50 to 79 percent of wave A.
- If wave B is a triangle, it will typically retrace 38 to 50 percent of wave A.
- A line connecting the ends of waves A and C is often parallel to a line connecting the end of wave B and the start of wave A. (Forecasting guideline: Wave C often ends upon reaching a line drawn from the end of wave A that is parallel to a line connecting the start of wave A and the end of wave B.)

*Double and Triple ZigZag Guidelines*

- The largest Wave in Wave W is usually less than Wave W by price. Wave X is usually a Zigzag family pattern.
- Wave X is usually less than 70% of Wave W by price. Wave X will usually retrace at least 30% of Wave W.
- Wave X is most likely to be a 38.2% retracement of Wave W. Wave X is next most likely to be a 50% retracement of Wave W. Wave X is next most likely to be a 61.8% retracement of Wave W.
- The largest Wave in Wave X is usually less than 140% of Wave W by price. The time taken by Wave X is usually between 61.8% and 161.8% of Wave 1. Wave Y is next most likely to be equal to 61.8% or 161.8% of W by price.
- Expect the time taken by Wave Y to be between 61.8% of Wave W and 161.8% of shortest of Wave W and X.
- Wave XX is usually a Zigzag family pattern.
- Wave XX is usually less than 70% of Wave Y by price. Wave XX will usually retrace at least 30% of Wave Y.
- Wave XX is most likely to be a 38.2% retracement of Wave Y. Wave XX is next most likely to be a 50% retracement of Wave Y. Wave XX is next most likely to be a 61.8% retracement of Wave Y.
- The largest Wave within Wave XX is usually less than 140% of Wave Y by price. Wave Z is most likely to be about equal to Wave Y by price.
- Wave Z is next most likely to be about equal to 61.8% or 161.8% of Wave Y. The largest Wave in Wave Z is usually less than Wave Y by price.

*Rules*

- A flat always subdivides into three waves.
- Wave A is never a triangle.
- Wave C is always an impulse or a diagonal triangle.
- Wave B always retraces at least 90 percent of wave A.

*Guidelines*

- Wave B usually retraces between 100 and 138 percent of wave A.
- Wave C is usually between 100 and 165 percent as long as wave A.
- Wave C usually ends beyond the end of wave A.

*Notes*

- When wave B is more than 105 percent as long as wave A and wave C ends beyond the end of wave A, the entire formation is called an expanded flat.
- When wave B is more than 100 percent as long as wave A and wave C does not end beyond the end of wave A, the entire formation is called a running flat.

CT = Contracting Triangle, ET = Expanding Triangle

A Triangle is a common 5 Wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D. A Triangle is either Contracting or Expanding depending on whether the channel lines are converging or expanding. Expanding Triangles are rare.

*Triangle Rules*

- Wave A of a CT is always either a Zigzag based pattern or a Flat. Wave A of an ET can only be a Zigzag based pattern.
- Within Wave A of a CT, Wave B must be less than 105% of Wave A’s price length. The same rule applies for Waves C and D of the CT.
- Wave B must be a Zigzag based pattern.
- Wave C of a CT can be any corrective pattern except a Triangle. Wave C of an ET must be a Zigzag based pattern.
- Wave B of a CT must retrace Wave A by 50%.
- For a CT, Wave C must be less than Wave B by price and Wave C must be greater than or equal to 50% of Wave B by price.
- For an ET, Wave B must be less than Wave C by price and Wave B must be greater or equal to 50% of Wave C by price.
- Wave D of a CT can be any corrective pattern except a Triangle. Wave D of an ET must be a Zigzag based pattern.
- Wave B, C and D must not move more than 10% beyond the A-C & B-D channel lines (based on the length of Wave C).
- In an ET, Wave C must be less than Wave D by price and Wave C must be more than 50% of Wave D by price.
- In an ET, Wave A must move within the A-C channel or pass through it by no more than 10% of the length of Wave B by price.
- In an CT, Wave D must be less than Wave C by price and Wave D must be greater than or equal to 50% of Wave C by price.
- The intersection of the channel lines must occur beyond the end of a CT, and before the beginning of an ET.
- The channel lines must either converge or diverge. They cannot be parallel. Wave D of a CT must not end such that when retraced 25% by E, E will not reach the price territory of A.
- Only one channel line in a CT may be horizontal. Neither channel line of an ET can be horizontal.
- The maximum time for Wave D is 4 times Wave C.
- Wave E of a CT can either be a CT or a Zigzag family pattern. For an ET, Wave E must be a Zigzag based pattern.
- In an ET, Wave E must be greater than Wave D by price and Wave D must be greater or equal to 50% of Wave E by price.
- In an ET, either Wave A or B will be the shortest Wave in the pattern.
- In a CT, Wave E will be less than Wave D by price and Wave E will be greater than or equal to 25% of Wave D by price.
- In a CT, either Wave A or B will be the longest Wave in the pattern. In a CT, the maximum time for Wave E is 4 times Wave C.
- Wave E must end in the price territory of A.
- Wave E must not pass through the B-D line, or if it does, by no more than 10% of the length of Wave D.
- The maximum number of pattern lengths into the future that the channel lines intersect is 6.

*Triangle Guidelines*

- Wave A is usually a zigzag family pattern. Wave B is usually a zigzag family pattern. Wave C is often a zigzag family pattern.
- Wave C usually takes more time than any other Wave in the pattern. Wave D is usually a zigzag family pattern.
- Waves B, C and D rarely move outside the B-D line. Waves A, B, C and E rarely move outside the A-C line.
- Wave E is usually a zigzag family pattern or the same type of Triangle as the larger pattern.
- Usually at least two Waves travelling in the same direction will relate by about 61.8%.
- It is common for two or more adjacent Waves will be related by 61.8%. In a CT, Wave E normally retraces Wave D by about 70%.

Combination families:

“Double three” flat combinations: | |

“Triple three” flat combinations: | |

*Double and Triple Combinations Rules*

- Double (D3) and Triple (T3) Combinations patterns are similar to Flats, and are typically two or three corrective patterns strung together with a joining Wave, called an x Wave, and are all corrective in nature. Doubles are not common, and Triples are rare. Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below.
- Wave W may be any corrective pattern except a Triangle, double or triple. Wave C of W cannot be a failure.
- Wave X may be any corrective pattern except a Triangle, double or triple.
- The minimum X Wave retracement is 70% of Wave W.
- The maximum price distance of Wave X is 150% of both the previous Wave and ensuing Wave. All internal data points are considered.
- Although there is no minimum time for Wave X, the maximum time is 10 times the time taken by Wave W.
- Wave Y may be any corrective pattern except double, triple or a Triangle in a Triple Zigzag. However, Wave Y cannot be a Zigzag if Wave W is a Zigzag. Wave Y must be greater than or equal to Wave X by price, except if Wave Y is a Triangle.
- Wave C of Y cannot be a failure.
- Wave Y must be no more than 5 times either Wave X or W in price and time. Wave Y has no minimum time constraint.
- Wave XX may be any corrective pattern except a Triangle, double or triple. The minimum Wave XX retracement is 70% of Wave Y.
- The maximum Wave XX retracement is 150% of previous Wave and ensuing Wave. All internal data points are considered.
- Wave Z may be any corrective pattern except double or triple. However Wave Z cannot be a Zigzag if Y is a Zigzag.
- Wave Z is greater than or equal to XX by price.
- Wave Z must be no more than 5 times either Waves XX, Y, X or W in price and time.
- Back to back and double failures are not allowed.
- If Wave Y is greater than Wave W by price, then the maximum Wave Z price movement is twice the price movement of Wave W.

*Double and Triple Combinations Guidelines*

- The largest Wave in Wave W is usually less than 140% of Wave W by price. Wave X is usually a Zigzag family pattern.
- The largest Wave in Wave X is usually less than Wave W by price. Wave X is usually less than 140% of W by price.
- Wave X is usually greater than 95% of Wave W by price. The most likely retracement for Wave X is 110% of Wave W.
- Time for X is generally between 62% of W1 and 1.618 of the time of W1.
- If Wave Y is a Triangle, the most likely length of Wave Y is about 61.8% of Wave W. If Wave Y is not a Triangle, the most likely lengths for Wave Y are 100% of Wave W, 161.8% of Wave W and 10% of the length of Wave W beyond the end of Wave W.
- The largest Wave in Wave Y is usually less than 140% of Wave W by price. Wave Y is usually less than twice the longest of Wave W and Wave X in price. Wave Y is generally between 61.8% of Wave W and 161.8% of Wave W in time. Wave XX is usually a Zigzag family pattern.
- The largest Wave in Wave XX is usually less than Wave Y in price. Wave XX is usually less than 140% of Wave Y by price.
- Wave XX is usually greater than 95% of Y by price.
- The most likely retracement for Wave XX is 110% of Wave Y.
- If Wave Y is a Triangle, most likely length by price is 61.8% of Wave W. If Wave Y is not a Triangle, then the most likely lengths are 100% of Wave W, 161.8% of Wave W and 10% of length of Wave W beyond the end of Wave W, all by price.
- The largest wave in Wave Z is usually less than 140% of Wave Y by price. Wave Z is usually less than twice the longest of Wave Y and Wave XX.