Question Of The Week - 4/10/2006

Sent in by Jitendra Shah (location unknown), this question delves into the fractal nature of wave theory.

There are two categories of Impulsive patterns (Trending and Terminal under NEoWave theory - Standard and Diagonal Triangle under orthodox Elliott Wave), which you can read about in Mastering Elliott Wave (Chapter 5).

In a Trending Impulse, wave-1 will subdivide into 5 segments, wave-2 will be corrective (usually 3 segments), wave-3 will again be 5 segments, wave-4 will be corrective (usually 3 segments) and finally wave-5 will be 5 segments.

In a Terminal Impulse, all waves (1, 2, 3, 4 & 5) will be corrective (normally 3 segments each) with waves- 1, 3 & 5 normally Zigzazgs (or complex corrections) and waves-2 and 4 normally Flats and Triangles (respectively).