Welcome to Wave Structure
Hey Elliotticians!! Welcome back to the second tutorial in the series: wave structure.
This is SUPER important to understand, which is why the video is 30 minutes long. There is a ton of value packed into one video including going through a bunch of vocabulary, real life examples in this current Bitcoin market, and a whole lot more.
I won't spoil it for you though... here's the video! Checkout the summary below the video & return to it whenever you need a quick refresher!
Important Concepts Summary
Motive waves are waves consisting of a collection of impulses and corrections. A motive wave is a 5-wave structure.
Wave extensions are basically elongated waves. Extensions happen in waves 1,3, and 5 of a motive structure. If the first wave is extended, waves 3 and 5 will typically be around the same size. If the third wave is extended, waves 1 and 5 will likely be the same size. Same applies to waves 1 and 3 if the 5th is extended.
Leading and ending diagonals occur when wave 4 overlaps into the wave 1 area. Usually, this would invalidate the count, but this is the exception. Leading diagonals can only occur in the first wave of a motive structure & the A wave of a corrective structure. Ending diagonals can only occur in the 5th wave of a motive structure, and the C wave in a corrective structure.
A Zig-Zag is an ABC correction where the A wave is made up of 5 waves (waves within waves = fractals), the B wave is made up of 3 waves, and the C wave is made up of another 5 waves.
A Flat is an ABC correction where the A wave is made up of 3 waves, the B wave is made up of 3 waves, and the C wave is made up of 5 waves.
There are different types of flats: regular flat, expanding flat, and running flat. Here is a picture of the different flats thanks to DailyFX.
Triangles are denoted ABCDE and, unsurprisingly, form a triangular structure before breaking out. Each of the five sub waves are made up of three waves. Here is a chart to show you how they look
Double Three (WXY) & Triple Three (WXYXZ)
A Double Three is a combination pattern that strings together 2 corrective patterns. Each pattern is strung together by an X wave, which could be any 3 wave pattern (note: in the video, I said the X wave could be a 5 wave here - the five wave I meant is a triangle, NOT a traditional 5 wave impulse. X wave can be any of the corrective structures shown in this video). Take a look at this photo for some clarification!