The tendency for impulse waves to be contained between two parallel trendlines (a channel).
Description
Elliott observed that impulse waves tend to form within a channel defined by two parallel lines. Drawing channels helps project the end points of waves. The initial channel is drawn connecting the ends of waves 2 and 4, then a parallel line is drawn from the end of wave 3 to project the end of wave 5. Channels also apply to corrective waves.
Key Points
- Initial channel: draw a baseline connecting wave 1 end and wave 2 end, then a parallel from wave 1 start
- After wave 3 completes: redraw connecting wave 2 and wave 4 ends; parallel from wave 3 end projects wave 5 target
- If wave 5 fails to reach the upper channel line, it signals weakness (possible truncation)
- A throw-over (wave 5 briefly exceeding the upper channel line) often signals an imminent reversal
- Corrective waves also form within channels — the channel defines the A–C relationship in zigzags
