Scenario Construction Procedure (Corrective Wave after Wave (3))

2026.05.09

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“Scenario Construction Procedure (Corrective Wave after Wave (3))” is a practical method for considering scenarios after a 5-3-5 downward wave appears following an upward wave (3). It examines wave (4)’s wave form (zigzag, flat, triangle, double three), the depth guideline (Previous Fourth Wave), and the possibility of developing into a diagonal.

Overview: Interpretation of Wave (4) after Wave (3)

This is scenario construction for when a downward wave appears following wave (3) of an impulse. This downward wave is considered to develop as wave (4), but both its wave form and depth must be examined.

Wave (4) is said to have a high probability of correcting down to the level of “the previous wave’s subwave 4” (the Previous Fourth Wave), and based on alternation — the tendency to take a different wave form from wave (2) — multiple wave form candidates are considered. Further, if wave (4) becomes deeper than expected and overlaps with wave (1), the possibility that the whole structure is an expanding diagonal arises, so rule verification is conducted in parallel.

Illustrated Chart

We visualize the wave form candidates for wave (4) after the progression wave (1) → wave (2) → wave (3). For each candidate, wave (4) develops starting from the end of wave (3), with the subsequent wave (5) (dashed) assumed trajectory shown.

Candidate ①: Zigzag wave (4) — Click to expand
Previous fourth wave zone S (1) (2) (3) A B C=(4) (5)?
The pattern where wave (4) develops as a zigzag (A-B-C). A case that tends to result in a relatively deep price correction. Often appears as alternation when wave (2) was not a zigzag.
Candidate ②: Flat wave (4) — Click to expand
Previous fourth wave zone S (1) (2) (3) A B C=(4) (5)?
The pattern where wave (4) develops as a sideways correction in a flat (3-3-5). Wave B retraces to near the end of wave (3), then wave C re-declines. Tends to be a somewhat longer adjustment in time.
Candidate ③: Triangle wave (4) — Click to expand
Previous fourth wave zone S (1) (2) (3) A B C D E=(4) (5)?
The pattern where wave (4) develops as a contracting triangle (3-3-3-3-3) in a 5-wave structure. Amplitude gradually narrows, and after wave E completes, the move enters wave (5). Matches the rule that a triangle appears “just before the last action wave”.
Candidate ④: Double three wave (4) — Click to expand
Previous fourth wave zone S (1) (2) (3) W X Y=(4) (5)?
The pattern where wave (4) develops as a double three (W-X-Y) compound correction of the time-correction type. Wave Y stops near wave W’s endpoint, centered on sideways adjustment.
⚠ Warning case: Wave (4) overlaps wave (1) → Rule violation — Click to expand
Level of wave (1) end (wave 4 must not break below this) S (1) (2) (3) (4)❌ Wave (4) breaks below wave (1) → impulse cannot hold
⚠ Rule violation: The case where wave (4) ends up below the level of wave (1)’s end. Because this violates the three major rules of an impulse, the impulse possibility is excluded. Instead, the possibility of an expanding diagonal, or an alternative count as part of a larger corrective wave, must be considered.
How to read the diagrams: The light blue band shows the “Previous fourth wave zone,” which serves as a guideline for wave (4)’s correction depth. If wave (4) stays shallower than this zone and does not break below wave (1), the impulse holds.

Wave (4) Wave Form Candidates

Candidate ①
Zigzag
A-B-C 3-wave structure. Tends to result in a deep price correction. Often appears when wave (2) was not a zigzag (alternation).
Candidate ②
Flat
3-3-5 3-wave structure. Sideways correction, somewhat long in time. Characteristic feature: wave B retraces to near wave (3)’s endpoint.
Candidate ③
Triangle
3-3-3-3-3 5-wave structure. Amplitude gradually narrows. Matches the rule of appearing “just before the last action wave.”
Candidate ④
Double three
W-X-Y compound correction. Time-correction type; wave Y stops near wave W’s endpoint. Centered on sideways adjustment.

Wave (4) Depth and Wave Form Guidelines

📐 Previous Fourth Wave
Wave (4) tends to correct down to the price zone of wave (3)’s subwave 4 (→ Depth of Corrective Wave (Previous Fourth Wave)).
🔄 Alternation
Wave (4) tends to take a different wave form from wave (2). Also tends to be a shallower correction than wave (2) (→ Alternation).
⚠ Response to Rule Violation
If wave (4) becomes large and overlaps wave (1), the three major rules of an impulse are violated. In this case, exclude the impulse possibility and search for the possibility that the whole structure is an expanding diagonal, or an alternative count at a different degree.

Detailed Points

  1. Wave (4) correction depth: down to the price zone of wave (3)’s subwave 4 is the target (Previous Fourth Wave guideline)

    Wave (4)’s correction has a high probability of reaching the level of “the previous wave’s subwave 4” (the Previous Fourth Wave). This is a guideline showing consistency across wave degrees.

  2. Wave (4) tends to be a shallower correction than wave (2) (alternation)

    From the alternation guideline, wave (4) tends to take a different wave form than wave (2) and a shallower correction. When wave (2) was a deep zigzag, wave (4) tends to be a sideways correction type (flat, triangle, double three).

  3. Wave (4) wave form candidates: zigzag, flat, triangle, double three, etc.

    Candidates for wave (4)’s wave form include zigzag, flat, triangle, and double three. Because each unfolds with different time spans and price widths, multiple scenarios are considered in parallel.

  4. Caution: If wave (4) becomes large and overlaps wave (1), the possibility that the whole is an expanding diagonal arises

    If wave (4) becomes deeper than expected and overlaps with wave (1), it does not hold as an impulse, but the possibility of recounting it as an expanding diagonal arises.

  5. Rule violation (wave (4) overlaps wave (1)) → Exclude the impulse possibility and search for a diagonal or alternative count

    When wave (4) overlaps wave (1), the three major rules of an impulse are violated, so the impulse possibility is completely excluded. Instead, a diagonal or a count at a larger degree must be considered.

Scenario Construction Procedure (Corrective Wave after Wave (1))
Interpretation of the 5-3-5 downward wave after wave (1) and the four wave form candidates for wave (2). The first article in this series.
Counting Procedure
The practical procedure for advancing counts in Elliott Wave analysis. The premise for scenario construction.
Count Verification Method
A method for verifying whether a constructed count is correct from multiple angles against rules and guidelines.
Alternation
The tendency for corrective subwaves within the same wave to take different forms. The key to wave form judgment of waves (2) and (4).
Depth of Corrective Wave (Previous Fourth Wave)
The guideline that wave (4)’s correction tends to target the range of wave (3)’s subwave 4.
Channeling
The tendency for an impulse to form within two parallel lines (a channel).

Summary

Scenario Construction Procedure (Corrective Wave after Wave (3)) is a practical method for considering scenarios after a 5-3-5 downward wave appears following an upward wave (3). Candidates for wave (4)’s wave form include zigzag, flat, triangle, and double three, and the correction depth targets the level of the Previous Fourth Wave.

While being conscious of alternation with wave (2), when wave (4) overlaps wave (1), switch consideration to an expanding diagonal or an alternative count rather than an impulse. The practical approach is to hold multiple scenarios in parallel and narrow them down based on market movements.

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