概念

The internal structure of each wave in an impulse: waves 1, 3, 5 subdivide into 5 smaller waves (impulse or diagonal); waves 2 and 4 subdivide into 3 smaller waves (any corrective form).

The three absolute rules that every impulse wave must satisfy. Any count that violates these rules is invalid: (1) Wave 2 does not retrace beyond wave 1 start; (2) Wave 3 is never the shortest; (3) Wa

An impulse wave is a 5-wave pattern that moves in the direction of the larger trend. It must satisfy three absolute rules and tends to follow several guidelines.

The fundamental pattern of Elliott Wave Theory: 5 waves in the direction of the main trend (impulse) followed by 3 waves in correction. Each sub-wave also follows this pattern.

Elliott waves exhibit fractal (self-similar) structure: the same 5-3 pattern appears at every degree of trend. Each wave contains smaller waves of the same form.

The philosophical foundation: human social behavior follows rhythmic patterns. Markets are a reflection of collective human psychology, not random walks.

Ralph Nelson Elliott discovered wave patterns in stock prices during his recovery from illness in the 1930s. He published 'The Wave Principle' in 1938.

Economic cycles (expansion, peak, contraction, trough) correspond to Elliott Wave degrees, but the correspondence is approximate — wave form is more reliable than timing.

A theory developed by Robert Prechter proposing that social mood (as reflected in stock prices) drives social events — not the other way around.

The Grand Supercycle is the largest degree of Elliott wave observable in market history. Analysis at this degree provides context for multi-decade market trends.