Impulse Rules v3 (DeepSeek) Flashcards
Impulse Rules
What defines an Impulse in Elliott Wave theory?
A five-wave pattern (1-2-3-4-5) moving in the direction of the larger trend, the most common Elliott Wave pattern.
Impulse Rules
What types of waves can Wave 1 be?
An Impulse or a Leading Diagonal.
Impulse Rules
Which corrective pattern is Wave 2 not allowed to be?
A Triangle.
Impulse Rules
What is the maximum retracement of Wave 2 relative to Wave 1?
Wave 2 cannot retrace more than 100% of Wave 1.
Impulse Rules
What is the minimum retracement of Wave 2 relative to Wave 1?
At least 20% of Wave 1.
Impulse Rules
What is the maximum time duration for Wave 2?
Nine times the time taken by Wave 1.
Impulse Rules
What type of wave must Wave 3 always be?
An Impulse.
Impulse Rules
How must Wave 3 compare to Wave 2 in price movement?
Wave 3 must be longer in gross price distance than Wave 2.
Impulse Rules
Which sub-waves must Wave 2’s gross movement exceed?
W2 must be > 61.8% of corrective sub-waves in W1 & W3, as well as > 1 of 2 of subwaves in W1 & W3
Impulse Rules
Can both Wave 3 and Wave 1 have 5th-wave failures?
No; they cannot both have failures (truncated Wave 5s).
Impulse Rules
What is the minimum price movement of Wave 3 relative to Wave 1?
At least 1/3 of Wave 1’s price movement.
Impulse Rules
What is the maximum price ratio of Wave 3 to Wave 1?
Wave 3 cannot exceed 7 times Wave 1’s price movement.
Impulse Rules
What is the maximum time limit for Wave 3?
Seven times the time duration of Wave 1.
Impulse Rules
What type of pattern can Wave 4 be?
Any corrective pattern.
Impulse Rules
When can Waves 1, 2, and 4 overlap?
They cannot overlap; except by 15% W2 in leveraged securities, for a maximum of 2 days
Impulse Rules
Which sub-waves must Wave 4’s gross movement exceed?
W4 must be > 61.8% of W3 & W5 corrective subwaves.
W4 must also be > 1 corrective subwave in W3, and 1 corrective subwave in W5.
Impulse Rules
What is the minimum movement of Wave 4 relative to Wave 2?
Greater than 1/3 of Wave 2’s price and percentage movement.
Impulse Rules
What is the maximum movement of Wave 4 relative to Wave 2?
Less than three times Wave 2’s price and percentage movement.
Impulse Rules
Can Wave 3 and Wave 4 both have 5th-wave failures?
No; they cannot both be failures.
Impulse Rules
What is the maximum time duration for Wave 4?
Twice the time taken by Wave 3.
Impulse Rules
What type must Wave 5 be if it’s longer than Wave 3?
An Impulse (not an Ending Diagonal).
Impulse Rules
How much must Wave 5 move relative to Wave 4?
At least 70% of Wave 4’s price movement.
Impulse Rules
Can Wave 3 be the shortest among Waves 1, 3, and 5?
No; Wave 3 must never be shorter than both Waves 1 and 5.
Impulse Rules
What restriction applies if Wave 5 is truncated?
Neither Wave 3 nor Wave 4 can have truncated sub-waves.
Impulse Rules
What is Wave 5’s maximum price/time movement relative to Wave 3?
Six times Wave 3’s price and time.
Impulse Rules
Does Wave 5 have a minimum time constraint?
No; there is no minimum time for Wave 5.
