Question of the Week: 2/20/2006
If a pattern looks like a 5-wave move, but lacks alternation, what does it mean?
It means the pattern you are analyzing is not a 5-wave move. It is common for those practicing orthodox Elliott Wave to apply the rule of alternation when it is convenient to their interpretation, but ignore it when it does not serve their bullish or bearish bias. The rule of alternation is essential to the proper design of ALL wave patterns (see page 5-5 of Mastering Elliott Wave). If you want your wave counts to "stick," and not require frequent changes, you must always employ the rule of alternation. Its absence from a series of waves is not a fluke, but an indication a rare NEoWave pattern (either a NEoWave Diametric or a NEoWave Symmetrical) is forming.
Click here to view NEoWave's Question Of The Week archive