Diagonal wave pattern rules

Elliott Wave Diagonal Wave Pattern Rules

1. Diagonal wave pattern consists of 5-waves, identified as 1, 2, 3, 4, 5
2. W2 shall not retrace lower than the beginning point of W1
3. W4 overlap to W1, but not lower than W2
4. W3 shall not the shortest wave
5. Typically, W1 is the longest, then W3 is the second longest and W5 is the shortest wave.
6. Occur at the beginning or ending of the Motive wave pattern
   • 6.1 W2 and W4 are corrective (:3)
   • 6.2 W1, W3 and W5 can be corrective (:3) or impulsive (:5) as below:
     • 6.2.1 W(1) or W(A) –> called Leading diagonal
       • Type 1; consist of sub-wave 5-3-5-3-5
       • Type 2; consist of sub-wave 3-3-3-3 6.2.2) W(5) or W(C) –> called Ending diagonal
     • 6.2.2 W(5) or W(C) –> called Ending diagonal
       • Consist of sub-wave 3-3-3-3

Below is the example of diagonal wave pattern both uptrend and downtrend.