Hello Traders. I hope you enjoyed chapter 1 and studied hard. If you are having a hard time understanding chapter 2, please go back to chapter 1 and study that chapter first.
Impulse Wave As previously discussed in chapter 1, 'Motive Waves' are subdivided into five waves. These five waves always move in the same direction of the current trend by degrees. The countertrend of wave 2 never moves beyond the beginning of wave 1 and wave 4 moves never beyond the beginning of wave 3. The impulse wave is one of the most common of wave types. In the impulse, wave 4 never overlaps with the high of wave 1. Waves 1,2,5 are themselves are what is called "motive." Also, wave 3 is NEVER the shortest wave and always an impulse
Leading Diagonal The leading diagonal is also considered a motive wave, but not an impulse. It is a subcategory of a motive wave because it also has corrective characteristics. Wave 4 overlaps with the top of wave 1 and can be the wave 1 of an impulse or a Wave A of an ABC correction. It's structure can be seen as: 3-3,3,3,3 or 5,3,5,3,5. For the leading diagonal, wave 4 overlaps with wave 1 and has a smaller retracement than our wave 2 as shown above. It is usually followed by a wave 2 in a motive wave or by a B wave in an ABC correction.
I didnt get this "wave 4 overlaps with wave 1 and has a smaller retracement than our wave 2 as shown above. It is usually followed by a wave 2 in a motive wave or by a B wave in an ABC correction." Any illustrative examples? I get the idea that all the leading diagonal can be followed by a Wave 2... but Wave 5 shoulnt be followed by an A instead of a B in an ABC correction ?
moksongmin
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I am continually learning from your posts and the insights in the premium group! Thanks for this opportunity!
XForceGlobal
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@moksongmin, Thank you very much :) This series is gonna be a drag, but for longer term, this needs to be learnt by everyone!
HariSeldon_33
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Thanks Eric! Such awesome content you are putting together for the community. Much appreciated!!!
XForceGlobal
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@HariSeldon_33, No problem Hari, it's all part of the empire! and you are a part of it!
This is the good stuff. Really appreciate also seeing this playout live as I learn first hand from on premium channel. This edu really helps it all come together. Theroy + practice = gold. Thanks man.