The tendency for two of the three actionary waves (1, 3, 5) in an impulse to be equal in price change and duration.
Description
When one of the three actionary waves in an impulse extends, the other two tend to become equal in price movement and time. This is called the Guideline of Equality. It is most useful when wave 3 has extended — in that case, waves 1 and 5 tend to be equal. This guideline is used to project price targets for wave 5.
Key Points
- When one wave extends, the other two actionary waves tend to become equal
- Most commonly observed when wave 3 extends → waves 1 and 5 become equal
- Equality is measured primarily by percentage change (not absolute price)
- If strict equality is not achieved, a 0.618 ratio is often observed
- Practical use: after wave 3 extends, add the length of wave 1 to the end of wave 4 to project the wave 5 target
