Rule of Similarity and Balance

---

NEoWave Definition

The Rule of Similarity and Balance is a core NEoWave principle developed by Glenn Neely to evaluate whether the wave segments you are observing are of the same degree, which is essential to good wave analysis.

According to NEoWave, all market structures tend to seek balance between:

• price consumption,
• time consumption,
• complexity consumption (i.e., the number of monowaves),
• and violent price action occurring in the direction of the trend.

This principle is one of the major distinctions between NEoWave and orthodox Elliott Wave analysis, which often focuses primarily on visual pattern recognition.