Elliott Wave Glossary Equality of Waves
The tendency for two of the three actionary waves (1, 3, 5) in an impulse to be equal in price change and duration.
Elliott Wave Glossary
Elliott Wave Glossary Elliott Wave Glossary Alternation
The tendency for corrective sub-waves within the same wave to take different forms. Most clearly observed between waves 2 and 4 in an impulse, and between the A and B waves in a flat.
Elliott Wave Glossary Channeling
The tendency for impulse waves to be contained between two parallel trendlines (a channel).
Elliott Wave Glossary Throw-over
A phenomenon where wave 5 of an impulse briefly exceeds the upper channel line before reversing sharply.
Elliott Wave Glossary Dual-Degree Channel
When wave 5 of two different degrees simultaneously reaches their respective channel lines, the probability of a trend reversal increases significantly.
Elliott Wave Glossary Volume
Volume tends to decline during corrections. Below Primary degree, wave 5 volume is generally lower than wave 3. Volume can help distinguish wave types.
Elliott Wave Glossary Fibonacci Ratios
The tendency for related waves within the same impulse or correction to maintain Fibonacci ratio relationships. Still an evolving area of research.
Elliott Wave Glossary Fibonacci Ratios: Wave 3 Extension
When wave 3 extends, its target is 1.618×, 2.618×, or 4.236× the length of wave 1.
Elliott Wave Glossary Extension
The tendency for one of the three impulse waves (1, 3, or 5) to become significantly larger than the other two.
Elliott Wave Glossary Stop-Loss Setting
In Elliott Wave trading, the stop-loss is placed at the price level that would invalidate the current wave count — providing a logical and objective exit point.