GALA / TetherUSLong
GALAUSDT
idea 4 (IMPULSE)
Rules:
An impulse consists of 5 internal waves.
Wave 1 and 5 always have to be impulses or diagonals
Wave 3 always has to be an impulse by itself (i.e. can’t be a diagonal)
Wave 3 must never be the shortest (in terms of percentage gain/loss) within the sequence
Wave 2 is always a corrective pattern and must not retrace more than 100% of wave 1
Wave 2 can be any corrective pattern except a triangle (but it can be a complex combination (wxy or wxyz) that ends with a triangle)
Wave 4 must not enter the price territory of wave 1
Wave 4 must always be a corrective pattern (any)
Guidelines:
Waves 2 and 4 tend to create alternation between each other (as outlined in the introduction of this guide)
Wave 2 usually retraces to deeper levels of wave 1 than wave 4 does relative to wave 3
Wave 2 develops more commonly as a simple corrective pattern (i.e. zigzag or double/triple zigzag)
Wave 4 develops more commonly as a complex corrective pattern (i.e. triangle, double/triple threes, flat)
In almost all impulses, one of the action waves (1,3, or 5) becomes extended, and it is most commonly wave 3
Extended waves can contain several further extensions within them
Wave 5 can fail to go beyond wave 3 (truncation) but it is not very common. It usually happens when wave 3 has been exceptionally long and overstretched. Truncation often results in significant reversals.
Wave 5 is most likely not going to form a diagonal if wave 3 is not extended
An impulse is not over until all sub degrees are finished (e.g. 5 of 5 of 5). The wave count takes precedence over channel lines and Fibonacci targets
Wave 3 almost always exhibits the greatest volume. If volume during the 5th wave is as high as the 3rd, expect an extended 5th wave.
Elliott Wave Fibonacci Retracement and Extension Guidelines:
If wave 1 is extended, then the size of wave 3 through to the end of wave 5 is often 61.8% – 78.6% relative to the size of wave 1
If wave 1 is extended, then wave 2 and 4 are very likely to be shallow (i.e. 23.6% – 38.2%)
If wave 1 is extended, then wave 2 will often end at the level of sub-wave 4 of 1 (i.e. the internal wave 4 of wave 1)
If wave 2 retraces more than 78.6% of wave 1, the idea that it really is a wave 2 becomes more doubtful (possible A-B?)
If wave 3 is extended, then wave 1 and 5 are often nearly equal in magnitude and duration. If equality is lacking, a 61.8% relationship is next most likely.
If wave 3 is extended, then wave 4 often ends at the level of sub-wave 4 of 3 and is quite shallow (retraces 23.6% – 38.2% of wave 3)
If wave 3 is extended and very vertical, it will likely overshoot the trend channel that can be drawn when placing the anchor points at the extremities of wave 1, 2 and 4. However the channel is still very valid for gauging the end of wave 5 (see image)
If wave 4 retraces more than 50% of wave 3, it is quite often not a wave 4.
Wave 5 is likely to become extended if wave 1 and 3 are equal in size.
If wave 5 is extended, then it often finishes at the 161.8% extension relative to the magnitude of wave 1 through to 3 (see image)
If wave 5 is extended, then the ensuing correction is often sharp and swift and ends near the extreme of sub-wave 2 of the extension. This does not apply when the market is ending a 5th wave simultaneously at more than one degree.
Rules:
An impulse consists of 5 internal waves.
Wave 1 and 5 always have to be impulses or diagonals
Wave 3 always has to be an impulse by itself (i.e. can’t be a diagonal)
Wave 3 must never be the shortest (in terms of percentage gain/loss) within the sequence
Wave 2 is always a corrective pattern and must not retrace more than 100% of wave 1
Wave 2 can be any corrective pattern except a triangle (but it can be a complex combination (wxy or wxyz) that ends with a triangle)
Wave 4 must not enter the price territory of wave 1
Wave 4 must always be a corrective pattern (any)
Guidelines:
Waves 2 and 4 tend to create alternation between each other (as outlined in the introduction of this guide)
Wave 2 usually retraces to deeper levels of wave 1 than wave 4 does relative to wave 3
Wave 2 develops more commonly as a simple corrective pattern (i.e. zigzag or double/triple zigzag)
Wave 4 develops more commonly as a complex corrective pattern (i.e. triangle, double/triple threes, flat)
In almost all impulses, one of the action waves (1,3, or 5) becomes extended, and it is most commonly wave 3
Extended waves can contain several further extensions within them
Wave 5 can fail to go beyond wave 3 (truncation) but it is not very common. It usually happens when wave 3 has been exceptionally long and overstretched. Truncation often results in significant reversals.
Wave 5 is most likely not going to form a diagonal if wave 3 is not extended
An impulse is not over until all sub degrees are finished (e.g. 5 of 5 of 5). The wave count takes precedence over channel lines and Fibonacci targets
Wave 3 almost always exhibits the greatest volume. If volume during the 5th wave is as high as the 3rd, expect an extended 5th wave.
Elliott Wave Fibonacci Retracement and Extension Guidelines:
If wave 1 is extended, then the size of wave 3 through to the end of wave 5 is often 61.8% – 78.6% relative to the size of wave 1
If wave 1 is extended, then wave 2 and 4 are very likely to be shallow (i.e. 23.6% – 38.2%)
If wave 1 is extended, then wave 2 will often end at the level of sub-wave 4 of 1 (i.e. the internal wave 4 of wave 1)
If wave 2 retraces more than 78.6% of wave 1, the idea that it really is a wave 2 becomes more doubtful (possible A-B?)
If wave 3 is extended, then wave 1 and 5 are often nearly equal in magnitude and duration. If equality is lacking, a 61.8% relationship is next most likely.
If wave 3 is extended, then wave 4 often ends at the level of sub-wave 4 of 3 and is quite shallow (retraces 23.6% – 38.2% of wave 3)
If wave 3 is extended and very vertical, it will likely overshoot the trend channel that can be drawn when placing the anchor points at the extremities of wave 1, 2 and 4. However the channel is still very valid for gauging the end of wave 5 (see image)
If wave 4 retraces more than 50% of wave 3, it is quite often not a wave 4.
Wave 5 is likely to become extended if wave 1 and 3 are equal in size.
If wave 5 is extended, then it often finishes at the 161.8% extension relative to the magnitude of wave 1 through to 3 (see image)
If wave 5 is extended, then the ensuing correction is often sharp and swift and ends near the extreme of sub-wave 2 of the extension. This does not apply when the market is ending a 5th wave simultaneously at more than one degree.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.