Impulse Rules

Question 1

IMP: W1 must be classified as…

Answer 1

Impulse or Leading Diagonal

Question 2

IMP: What types of corrective patterns can Wave 2 be?

Answer 2

Any corrective pattern except a Triangle

Question 3

IMP: What is the maximum retracement of Wave 2 relative to Wave 1?

Answer 3

No part of Wave 2 can more than retrace Wave 1

Question 4

IMP: What is the minimum retracement percentage for Wave 2?

Answer 4

20%

Question 5

IMP: What is the maximum time for Wave 2 relative to Wave 1?

Answer 5

Nine times Wave 1

Question 6

IMP: What type of wave must Wave 3 be classified as?

Answer 6

Impulse

Question 7

IMP: How must Wave 3 compare to Wave 2 in terms of price distance?

Answer 7

Longer than Wave 2

Question 8

IMP: What must the gross price movement of Wave 2 be greater than?

Answer 8

Either Wave 2 or Wave 4 of Wave 1, and also greater than either Wave 2 or Wave 4 of Wave 3

Question 9

IMP: Wave 2 must also be greater than what percentage of the gross movement of Wave 2 of 1, Wave 4 of 1 & Wave 2 of 3, Wave 4 of 3,

Answer 9

61.8%

Question 10

IMP: Can W3 and W1 both have 5th Wave failures?

Answer 10

No

Question 11

IMP: What is the minimum price requirement for Wave 3 relative to Wave 1?

Answer 11

Cannot be less than 1/3 of Wave 1

Question 12

IMP: What is the maximum price for Wave 3 relative to Wave 1?

Answer 12

Cannot be more than 7 times Wave 1

Question 13

IMP: Is there a minimum time constraint for Wave 3?

Answer 13

No

Question 14

IMP: What is the absolute maximum time limit for Wave 3?

Answer 14

7 times Wave 1

Question 15

IMP: What type of corrective pattern can Wave 4 be?

Answer 15

Any corrective pattern

Question 16

IMP: What is the overlap restriction for Waves 1, 2, and 4?

Answer 16

Cannot overlap except by 15% of Wave 2 with leveraged securities

Question 17

IMP: What is the maximum duration for overlap of Waves 1, 2, and 4?

Answer 17

Less than two days

Question 18

IMP: What must the gross price movement of Wave 4 exceed?

Answer 18

Gross movement of Wave 2 of 3 or Wave 4 of 3, and also greater than gross movement of Wave 2 of 5 or Wave 4 of 5

Question 19

IMP: W4 must be > …

Answer 19

Wave 2 of 3 or Wave 4 of 3
AND
Wave 2 of 5 or Wave 4 of 5
AND
61.8% of the GPM of each of the four subwaves

Question 20

IMP: What must the gross movement by price of Wave 4 be greater than relative to Wave 2?

Answer 20

Greater than 1/3 of Wave 2

Question 21

IMP: What must the gross movement by price of Wave 4 be less than relative to Wave 2?

Answer 21

Less than three times the gross movement of Wave 2

Question 22

IMP: Can Wave 3 and Wave 4 both be failures?

Answer 22

No

Question 23

IMP: What is the maximum time for Wave 4 relative to Wave 3?

Answer 23

Twice the time taken by Wave 3

Question 24

IMP: What types of waves can Wave 5 be classified as?

Answer 24

Impulse or Ending Diagonal

Question 25

IMP: If Wave 5 is longer than Wave 3, what must it be classified as?

Answer 25

Impulse

Question 26

IMP: Wave 5 must move by price more than what percentage of Wave 4?

Answer 26

70%

Question 27

IMP: Wave 3 must never be shorter than…

Answer 27

BOTH W1 & W5

Question 28

IMP: What happens if Wave 5 is truncated?

Answer 28

Neither Wave 3 nor Wave 4 can contain a subwave that is truncated

Question 29

IMP: What is the maximum movement of Wave 5 relative to Wave 3?

Answer 29

Six times Wave 3

Question 30

IMP: What is the minimum & maximum time constraint for W5

Answer 30

No minimum time constraint.
Maximum time constraint for W5 is 6x W3 in time.