Overview: Interpretation of Wave ② after Wave ① Completion
In cases where an upward wave (5) impulse has completed and is assumed to be a one-degree-larger wave ①, we construct scenarios for the wave form of the following wave ②. The internal structure (whether 5 waves or 3 waves) of the first wave A that appears at the start of wave ② determines whether the entire wave ② will become a zigzag or a flat.
At the same time, grasping where the completed wave ① through ⑤ is positioned at a higher degree is essential. Because depending on which wave at which degree the completed wave is positioned at, the depth, direction, and wave form of the following wave ② fundamentally change.
Illustrated Chart
We visualize the two wave form candidates for wave ② after wave (1)–(5) completes and forms wave ①. The difference in wave A’s internal structure is the key to wave form determination.
Candidate ①: Wave ② = Zigzag (Wave A = 5-wave structure) — Click to expand
Candidate ②: Wave ② = Flat (Wave A = 3-wave structure) — Click to expand
Two Wave Form Candidates for Wave ②
Detailed Points
-
Wave ② candidate ①: Part of a zigzag’s wave A
When wave A appearing at the start of wave ② unfolds in a 5-wave structure, we judge that wave ② has a high probability of completing as a zigzag (A-B-C = 5-3-5). A pattern that tends to result in a relatively deep price correction.
-
Wave ② candidate ②: Part of a flat’s wave A
When wave A appearing at the start of wave ② unfolds in a 3-wave structure, we judge that wave ② has a high probability of completing as a flat (A-B-C = 3-3-5). A pattern that tends to be a sideways time-correction type correction.
-
From ratio relationships, wave ② tends to be 0.618× or 0.5× wave ①, or even shallower 0.382× or 0.236×
Wave ②’s size tends to be 0.618× or 0.5× wave ①, and even for a shallow correction, often around 0.382× or 0.236×. Use Fibonacci ratios to estimate wave ②’s projected endpoint.
-
Grasping where the completed waves ① through ⑤ are positioned at a higher degree is essential
The completion of waves ① through ⑤ is itself part of a larger-degree wave. It is essential to grasp where it is positioned at that higher degree (e.g., part of wave (1)? part of wave (3)? part of wave (5)?), which significantly changes the interpretation of wave ②.
-
The depth, direction, and wave form of the following wave fundamentally change depending on which degree the completed wave is positioned at
Even for the same event of “wave ① has completed,” whether it is within wave (1) at the higher degree or within wave (5), the developments — including the meaning of the following wave ② — are entirely different. Not losing sight of the higher-degree context is the core of accurate scenario construction.
Related Terms
Summary
Scenario Construction Procedure (After Wave (5) / Wave ① Completion) is scenario construction after the upward wave (5) completes and a one-degree-larger wave ① has completed. The wave form candidates for the following wave ② are part of a zigzag’s wave A and part of a flat’s wave A — distinguished by wave A’s internal structure (5 waves or 3 waves).
The size of wave ② targets the Fibonacci ratios of 0.618×, 0.5×, 0.382×, or 0.236× wave ①. At the same time, it is essential to grasp where the completed wave ① through ⑤ is positioned at a higher degree, which fundamentally changes the development of the following wave.
