Impulse Rules v2

Question 1

What defines an Elliott Wave Impulse?

Answer 1

A 5-wave pattern (W1-W5) in the direction of the larger trend.

Question 2

Valid structure for W1?

Answer 2

Impulse or Leading Diagonal

Question 3

Which corrective pattern is forbidden in W2

Answer 3

Triangle

Question 4

W2 retracement rules

Answer 4

Maximum: Cannot exceed 100% of W1
Minimum: 20% of W1

Question 5

Time constraint for W2

Answer 5

≤9x W1’s duration

Question 6

W2’s movement vs. sub-waves

Answer 6

Must exceed 1 of W2 & W4 of W1 and 1 of W2 & W4 of W3. Also >61.8% of all 4 sub-waves

Question 7

Required structure for W3?

Answer 7

Always Impulse

Question 8

W3 vs. W1 price range

Answer 8

1/3 –7x W1

Question 9

W3 vs. W2 requirement

Answer 9

Longer than W2 GPM

Question 10

W3’s time limit

Answer 10

≤7x W1’s duration

Question 11

Allowed patterns for W4

Answer 11

Any corrective

Question 12

Overlap rule for W1/W2/W4

Answer 12

No overlap (except ≤15% of W2 in leveraged securities & then only <2 days)

Question 13

W4 movement vs. sub-waves

Answer 13

Must exceed 1 of W2 & W4 of W3 and 1 of W2 & W4 of W5. Also >61.8% of all 4

Question 14

W4 vs. W2 price range:

Answer 14

> 1/3 and <3x W2

Question 15

Valid structures for W5

Answer 15

Impulse or Ending Diagonal (if W5 > W3, must be Impulse)

Question 16

W5 vs. W4 requirement

Answer 16

Moves >70% of W4’s end-to-end price.

Question 17

W5 truncation rule

Answer 17

If W5 is truncated or contains an IMP that is truncated then no truncations in W3/W4 sub-waves

Question 18

W3’s critical length rule

Answer 18

Never shorter than both W1 & W5 at same time (price or %)

Question 19

W4’s max time

Answer 19

≤2x W3’s duration

Question 20

W5’s max movement

Answer 20

≤6x W3 (price/time

Question 21

Define a “truncated W5”

Answer 21

W5 shorter than W4 by price

Question 22

Which waves cannot both fail?

Answer 22

W3 and W4 if W5 is truncated