Elliott Wave Principle : Glossary

Glossary

Glossary of Terms

Alternation (guideline of): If wave two is a sharp correction, wave four will usually be a sideways correction, and vice versa.

Apex: Intersection of the two boundary lines of a contracting or barrier triangle.

Corrective Wave: A three-wave pattern, or combination of three-wave patterns, that moves in the opposite direction of the trend of one larger degree.

Diagonal: A wedge-shaped pattern containing overlap that usually occurs as a fifth or C wave and occasionally occurs as a first or A wave. Subdivides 3-3-3-3-3.

Double Three: Combination of two simple sideways corrective patterns, labeled W and Y, separated by a corrective wave labeled X.

Double Zigzag: Combination of two zigzags, labeled W and Y, separated by a corrective wave labeled X.

Equality (guideline of): In a five-wave sequence, when wave three is the longest, waves five and one tend to be equal in price length.

Expanded Flat: Flat correction in which wave B enters new price territory relative to the preceding impulse wave.

Failure: See Truncated Fifth.

Flat: Sideways correction labeled A-B-C. Subdivides 3-3-5.

Impulse: A five-wave pattern that subdivides 5-3-5-3-5 and contains no overlap.

Irregular Flat: See Expanded Flat.

Motive Wave: A five-wave pattern that moves in the same direction as the trend of one larger degree, i.e., any impulse or diagonal.

One-two, one-two: The initial development in a five-wave pattern, just prior to acceleration at the center of wave three.

Overlap: The entrance by wave four into the price territory of wave one. Not permitted in impulse waves.

Previous Fourth Wave: The fourth wave within the preceding impulse wave of the same degree. Corrective patterns typically terminate in this area.

Running: Refers to a flat or triangle in which wave B goes beyond the start of wave A, and wave C does not go below the end of wave A.

Sharp Correction: Any corrective pattern that does not contain a price extreme meeting or exceeding that of the ending level of the prior impulse wave; alternates with sideways correction.

Sideways Correction: Any corrective pattern that contains a price extreme meeting or exceeding that of the prior impulse wave; alternates with sharp correction.

Third of a Third: Powerful middle section within an impulse wave.

Thrust: Impulsive wave following completion of a triangle.

Triangle (barrier): Same as contracting triangle but the B-D trend line is horizontal. May be termed “ascending” or “descending” depending on direction.

Triangle (contracting): Corrective pattern, subdividing 3-3-3-3-3 and labeled A-B-C-D-E. Occurs as a fourth, B or Y wave. Trend lines converge as pattern progresses.

Triangle (expanding): Same as contracting triangle but trend lines diverge as pattern progresses.

Triple Three: Combination of three simple sideways corrective patterns labeled W, Y and Z, each separated by a corrective wave labeled X.

Triple Zigzag: Combination of three zigzags, labeled W, Y and Z, each separated by a corrective wave labeled X.

Truncated Fifth: The fifth wave in an impulsive pattern that fails to exceed the price extreme of the third wave.