Volume tends to decline during corrections. Below Primary degree, wave 5 volume is generally lower than wave 3. Volume can help distinguish wave types.
Description
Elliott used volume as a supplementary tool for wave identification. In a healthy impulse, volume tends to expand during actionary waves and contract during corrections. Wave 3 typically shows the highest volume. Wave 5 volume is usually lower than wave 3 at degrees below Primary. An exception: if wave 5 extends, volume may exceed that of wave 3.
Key Points
- Volume expands in actionary waves, contracts in corrections
- Wave 3 typically shows peak volume
- Wave 5 volume < wave 3 volume (below Primary degree) — serves as a warning signal
- Exception: if wave 5 extends, volume may surpass wave 3
- Volume during corrections: declines progressively (a sign of healthy corrective action)
- Flat corrections: volume tends to increase in the C wave — useful for distinguishing wave B from wave 1
