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  1. #1
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    [REQ] Elliott Wave Theory and right rule about Wave 4. A clarification.

    I often read two different versions about this rule:
    1. Wave 4 doesn't have to overlap the range territory of Wave 1
    2. Wave 4 doesn't have to overlap the range territory of Wave 2

    and these two versions doesn't mean the same thing, since if Wave 2 is an expanded flat its "range territory" goes well above the end of Wave 1.
    If Wave 4 overlaps the final part of Wave B of an expanded flat is still the wave count correct?

    So I am asking which one is the correct version of EWT rule about Wave 4 (I think #1)
    Last edited by Minion; 04-10-2018 at 08:04 PM.

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  3. #2
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    Two Impulse types allow the intersection of wave 4 and 1:

    - Diagonal Triangle Type 1
    and
    - Diagonal Triangle Type 2

    https://www.sendspace.com/file/nnf1ha

    Sixer

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  5. #3
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    OK, thanks for the files, but why do they say that "Wave 4 cannot enter the price territory of Wave 2"?

    Wouldn't it be more correct to say "Wave 4 cannot enter the price territory of Wave 1"?
    If Wave 4 enters in the territory of a Wave B of of an expanded flat (=Wave 2) without entering into the price territory of Wave 1, is still the count correct?

    For what it counts, Prechter (in the Elliott Wave book) talks about Wave 4 ... into the price territory of Wave 1 (and not 2)
    And the Elliott Wave Crash Course that you posted talks about Wave 1, while the Elliott Wave Guidelines also posted talk about Wave 2
    Why two different interpretations for one simple rule?
    Last edited by Minion; 06-19-2017 at 01:55 PM.

  6. #4
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    If this happens, your count as an impulse is wrong - you have to consider a corrective pattern and no impulse pattern.

    Sixer

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    Minion, did you ever find an answer why there are two different views of the this rule?

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  10. #6
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    Quote Originally Posted by yandaPaur View Post
    Minion, did you ever find an answer why there are two different views of the this rule?
    The answer I found is that

    this is the RULE
    Wave 4 doesn't have to overlap the range territory of Wave 1

    this is a STRONG GUIDELINE
    Wave 4 doesn't have to overlap the range territory of Wave 2

    The RULE must never be violated
    The STRONG GUIDELINE should not be violated, meaning that one has to see if other counts are possible and prefer them, and consider the violation of the strong guideline only as a last resource.

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    Quote Originally Posted by Minion View Post
    The answer I found is that

    this is the RULE
    Wave 4 doesn't have to overlap the range territory of Wave 1

    this is a STRONG GUIDELINE
    Wave 4 doesn't have to overlap the range territory of Wave 2

    The RULE must never be violated
    The STRONG GUIDELINE should not be violated, meaning that one has to see if other counts are possible and prefer them, and consider the violation of the strong guideline only as a last resource.
    Hi ! There is the difference between Rules and Guidelines. Rules must not be violated but guidelines are there to just guide you about some of the repeating wave behavior that most often get repeated but not mandatory that wave structure will always follow the Guidelines.

    There are three rules and they are must not be violated. One of them as u asked is "No Portion of Wave 4 should enter the price territory of either wave 1 or wave 2".

    There are there guidelines - And they are just guide and not a must have.

    Guideline of Wave Equality,
    Guideline of Alternation,
    Guideline regarding Depth of Corrective Wave
    Last edited by tech1978; 03-30-2018 at 08:15 PM.

  13. #8
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    @tech1978
    I know the difference, but somewhere I read what I wrote above.... maybe on lara Iriarte youtube videos ( https://www.youtube.com/user/ElliottWaveAnalysis/featured ) or Elliott_Trader's ( https://www.youtube.com/user/ElliottTrader/videos?disable_polymer=1 )

    Someone called it a "strong" guideline, and explained what I re-posted here

  14. #9
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    Found... page 231 of Gorman & Kennedy - Visual Guide to Elliott Wave Trading

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    Quote Originally Posted by Minion View Post
    Found... page 231 of Gorman & Kennedy - Visual Guide to Elliott Wave Trading
    They are just way of expression from different authors or experts.

    Either one say that Strong Guidelines and weak guidelines or one may divide mandatory wave behavior into rules and optional one into guidelines. So please don't get much into it.

    Point remains same - Some rules are mandatory and they must not be violated and other like guidelines or you can also say optional rules which most of time occur but not a mandatory that they will occur always.
    Last edited by tech1978; 03-31-2018 at 08:59 AM.

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