Failure Truncation

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Occurs when the 5th wave of an impulsion fails to move beyond the end of wave-3.

NEoWave Association

NEoWave analyzes failures in greater detail and often uses them as important indicators of:

• weakening momentum,
• trend termination,
• emotional exhaustion.

Glenn's Q&A describes failures as warnings market psychology is shifting before price fully confirms the reversal.

NEoWave also examines:

• time consumption,
• momentum divergence,
• and internal complexity

to determine whether a truncation is legitimate or simply a misidentified wave pattern.