EW Glossary

Alternation (guideline of) - If wave two is a sharp correction, wave four will usually be a sideways correction, and vice versa.

Apex - Intersection of the two boundary lines of a contracting triangle.


Corrective wave - A three wave pattern, or combination of three wave patterns, that moves in the opposite direction of the trend of one larger degree.


Diagonal Triangle (Ending) - A wedge shaped pattern containing overlap that occurs only in fifth or C waves. Subdivides 3-3-3-3-3.


Diagonal Triangle (Leading) - A wedge shaped pattern containing overlap that occurs only in first or A waves. Subdivides 5-3-5-3-5.


Double Three - Combination of two simple sideways corrective pat-terns labeled W and Y, separated by a corrective wave labeled X.


Double Zigzag - Combination of two zigzags labeled W and Y, separated by a corrective wave labeled X.


Equality (guideline of) - In a five-wave sequence, when wave three is the longest, waves five and one tend to be equal in price length.


Expanded Flat - Flat correction in which wave B enters new price territory relative to the preceding impulse wave.


Failure - See Truncated Fifth.


Flat - Sideways correction labeled A-B-C. Subdivides 3-3-5.


Impulse Wave - A five-wave pattern that subdivides 5-3-5-3-5 and contains no overlap.


Irregular Flat - See Expanded Flat.


Motive Wave - A five-wave pattern that makes progress, i.e., any impulse or diagonal triangle.

One-two, one-two - The initial development in a five wave pattern, just prior to acceleration at the center of wave three.

Overlap - The entrance by wave four into the price territory of wave one. Not permitted in impulse waves.


Previous Fourth Wave - The fourth wave within the preceding impulse wave of the same degree. Corrective patterns typically terminate in this area.


Sharp Correction - Any corrective pattern that does not contain a price extreme meeting or exceeding that of the ending level of the prior impulse wave; alternates with sideways correction.


Sideways Correction - Any corrective pattern that contains a price extreme meeting or exceeding that of the prior impulse wave; alternates with sharp correction.


Third of a Third - Powerful middle section within an impulse wave.


Thrust - Impulsive wave following completion of a triangle.


Triangle (contracting, ascending or descending) - Corrective pattern, subdividing 3-3-3-3-3 and labeled a-b-c-d-e. Occurs as a fourth, B or Y wave. Trendlines converge as pattern progresses.


Triangle (expanding) - Same as other triangles but trendlines diverge as pattern progresses.


Triple Three - Combination of three simple sideways corrective patterns labeled W, Y and Z, each separated by a corrective wave labeled X.


Triple Zigzag - Combination of three zigzags, labeled W, Y and Z, each separated by a corrective wave labeled X.


Truncated Fifth - The fifth wave in an impulsive pattern that fails to exceed the price extreme of the third wave.


Zigzag - Sharp correction, labeled A-B-C. Subdivides 5-3-5

No comments: