In classical Elliott Wave theory, motive impulse structures establish the directional framework of a prevailing cycle degree. An impulse wave consistently subdivides into five constituent waves labeled 1 through 5, following three immutable structural axioms:
- Axiom 1: Wave 2 never retraces more than 100% of the origin of Wave 1.
- Axiom 2: Wave 3 is never the shortest wave among waves 1, 3, and 5.
- Axiom 3: Wave 4 never terminates into the price territory of Wave 1 (excluding diagonal variations).
Mathematical Proportions and Extension Tendencies
Empirical market geometry reveals that one of the motive actionary waves (typically wave 3 in modern liquid environments) undergoes extended development. An extended third wave frequently attains a 1.618 or 2.618 Fibonacci relationship relative to the net displacement of wave 1.
Understanding these geometric invariants enables rigorous structural classification without subjective speculation.
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