📍Part 3. Motive Waves - Leading & Ending Diagonals.👩🏻💻Welcome to the 3nd lecture on Elliott Waves!
➡️In this lecture, I will talk about the Leading and Ending diagonals as the primary and most common variations of impulsive waves. We will also touch on the Expanding diagonal, which occurs significantly less frequently. Earlier, we covered the general concept of impulse and its structure. Now, I will specifically discuss the variations of impulses and, namely, for waves "1", "5", as well as corrective waves "A" and "C".
➡️Let's start with variations for the first wave in the impulse and correction. This is the Leading diagonal. This structure may remind you of an ascending triangle, and essentially, that's what it is. The first wave itself implies that before this, we were moving in the opposite direction. So, if wave 1 is ascending, it means there was a certain descending movement before it. And it's obvious that in this descending movement, sales prevailed. Thus, reversing the price in the opposite direction may not be so easy. In such cases, when it's not easy, we get not a sharp 5-wave impulse but a Leading diagonal, where conditional buyers, as it were, chew their way upwards.
➡️Next, of course, there is correction and further growth. The Leading diagonal can also be encountered in wave a of correction "ABC". And here, the logic remains the same since the correction goes in the opposite direction of the trend; we have significant support for demand. In our example, this is an ascending trend. Therefore, we don't get a sharp impulse, but gradually, and squeezing, which forms the structure of the Leading diagonal.
➡️As you already understand, waves "2" or "4" also have a correctional structure "ABC", where "A" can also be a Leading diagonal. And then, you can encounter the Leading diagonal in wave "1" and in wave "A", and since they reverse the direction of movement, the structure is not formed like a sharp impulse but more like an ascending triangle in the case of wave "1" and a descending triangle in the case of corrective wave "A".
➡️Moving on to the Ending diagonals. You can get them in wave "5" and wave c in the corrective structure "ABC". Here the principle is similar, as you might have guessed, to the case of wave "5". We see how the ascending movement fades, as if the buyers no longer have the strength to move the price, impulsively upwards, I remind you, we are considering an example of an ascending trend movement.
➡️You can encounter the Ending diagonal in wave "5" and wave "C". It turns out everything is quite logical and simple. Wave "1" starts the impulse, and wave "A" starts the correction. Wave "1" starts the impulse, and wave "A" starts the correction. In turn, wave "5" completes the impulse, and wave "C" completes the correction.
➡️Well, now we need to understand the rules for the Leading and Ending diagonals to determine them correctly.
➡️Now let's look at the rules separately for Contracting diagonals!
📍 Rules 📍
📍In the contracting variety, wave "3" is always shorter than wave "1", wave "4" is always shorter than wave "2", and wave "5" is always shorter than wave "3" (1 > 3 > 5 and 2 > 4).
📍Going forward in time, a line connecting the ends of waves 2 and 4 converges towards with the line connecting the ends of waves "1" and "3".
📍 Guidelines 📍
📍In the contracting variety, wave "5" ends beyond the end of wave "3" (only for the Leading diagonals).
📍In the contracting variety, wave "5" ends beyond the end of wave "3" or does not reach the end of wave "3": truncation (only for the Ending diagonals).
📍In the contracting variety, wave "5" usually ends at or slightly beyond a line that connects the ends of waves "1" and "3" (Ending beyond that line is called a throw-over).
📣This concludes the lecture on impulse waves. Save the images and practice.
Next week I'll talking about the Corrective Waves - Simple - Sharp Corrections.
🔔 Links to other lessons in related ideas. 🔔
