Diagonal Rules v2 Flashcards
Diagonal
What is a Diagonal in Elliott Wave Theory?
A Diagonal is a common 5-wave impulsive pattern labeled 1-2-3-4-5 that moves with the larger trend. It moves within two channel lines drawn from Waves 1 to 3 and from Waves 2 to 4. It must be contracting.
Diagonal
What are the two types of Diagonals?
Leading Diagonal (LD) and Ending Diagonal (ED).
Diagonal
Which Diagonal is more common: LD or ED?
Ending Diagonals (ED) are much more common than Leading Diagonals (LD).
Diagonal
What must Wave 1 of a Leading Diagonal (LD) be?
Wave 1 must be an Impulse or another LD.
Diagonal
What must Wave 1 of an Ending Diagonal (ED) be?
Wave 1 must be a Zigzag family pattern.
Diagonal
What kind of corrective pattern can Wave 2 be?
Wave 2 may be any corrective pattern except a Triangle.
Diagonal
How does Wave 2 compare to Wave 1 by price?
Wave 2 must be less than Wave 1 by price.
Diagonal
What must Wave 3 of a Leading Diagonal (LD) be?
Wave 3 must be an Impulse.
Diagonal
What must Wave 3 of an Ending Diagonal (ED) be?
Wave 3 must be a Zigzag family pattern.
Diagonal
How does Wave 3 compare to Wave 2 by price?
Wave 3 must be greater than Wave 2 by price.
Diagonal
What kind of corrective pattern can Wave 4 be?
Wave 4 may be any corrective pattern.
Diagonal
What must Waves 2 and 4 do relative to Wave 3?
Waves 2 and 4 must either overlap or be within 10% of the length of Wave 3.
Diagonal
How long must Wave 4 take relative to Wave 2?
The time taken by Wave 4 must be between 10% and 10 times the time taken by Wave 2.
Diagonal
What must Wave 5 of an Ending Diagonal (ED) be?
Wave 5 must be a Zigzag family pattern.
Diagonal
What must Wave 5 of a Leading Diagonal (LD) be?
Wave 5 must be an Impulse or an ED.
Diagonal
What is the rule for Wave 5 if Wave 1 is an LD?
If Wave 1 is an LD, then Wave 5 cannot be an ED.
Diagonal
How does Wave 3 compare to Waves 1 and 5?
Wave 3 must not be shorter than both Waves 1 and 5.
Diagonal
How does Wave 5 compare to Wave 4 by price?
Wave 5 must be at least 80% of Wave 4 by price.
Diagonal
Is Wave 5 ever the longest wave compared to Waves 1 and 3?
No, Wave 5 is never the longest when compared with Wave 1 and Wave 3.
Diagonal
How does Wave 5 compare to Wave 3 by price?
Wave 5 is always less than Wave 3 by price.
Diagonal
Where must the intersection of the channel lines be?
The intersection of the channel lines must be beyond the end of the pattern.
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How must Diagonals move relative to the channel lines?
Diagonals must move within the two channel lines or be within 10% of gross movement.
Diagonal
What are the rules for the channel lines?
Channel lines must converge, slope in the same direction, and neither be horizontal.
Diagonal
What is the maximum number of pattern lengths into the future that the channel lines can intersect?
The maximum is 4 pattern lengths into the future.
Diagonal
What is the minimum time for Wave 5 relative to Wave 4?
The minimum time for Wave 5 is 10% of the time taken by Wave 4.
Diagonal
What is the maximum time for Wave 5 relative to Wave 3?
The maximum time for Wave 5 is 5 times the time taken by Wave 3.
