![Page 1: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/1.jpg)
The Basics of theWave Principle
Presented by Wayne Gorman, Senior Tutorial Instructor
Elliott Wave International P.O. Box 1618, Gainesville, GA 30503 USA
800-336-1618 or 770-536-0309Fax 770-536-2514
www.elliottwave.com
© 2006 Elliott Wave International
The e-learning Series for Traders
![Page 2: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/2.jpg)
1.00 Introduction � Ralph Nelson Elliott�s Discovery
2.00 Motive Waves
3.00 Corrective Waves
4.00 Rules
5.00 Guidelines
6.00 Wave Personalities
7.00 Fibonacci Relationships
8.00 Summary
The Basics of the Wave Principle
1.01
![Page 3: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/3.jpg)
Financial Market Behavior Characteristics
Emotional (Unconscious)
Subjective
Impulsive
Ignorance and Uncertainty
Herding
Values Cannot Revert To Anything
1.02
![Page 4: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/4.jpg)
The Wave Principle
Financial Markets are Patterned
1.03
![Page 5: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/5.jpg)
Ralph Nelson Elliott(1871 � 1948)
� Crowd behavior trends and reverses in recognizable patterns, that he called waves.
� These structures link together to form larger versions of the same patterns and how those, in turn, become the building blocks for patterns of the next larger size and so on.
� In 1938, he coined this phenomenon The Wave Principle.
� Nature�s Law � The Secret of the Universe1.04
![Page 6: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/6.jpg)
1.05
![Page 7: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/7.jpg)
1.06
![Page 8: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/8.jpg)
1.07
![Page 9: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/9.jpg)
1.08
![Page 10: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/10.jpg)
1.09
![Page 11: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/11.jpg)
A More Realistic Wave Depiction
1.10
![Page 12: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/12.jpg)
1 2 3
4 5 6
1.11
![Page 13: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/13.jpg)
65 7
1.12
![Page 14: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/14.jpg)
Mankind�s progress (popularly measured by stock market valuation) is not a straight line, random or cyclical.
Growth and thereby social systems are moving in a pattern consisting of five waves up and three waves down.
This pattern reflects the alternation of growth and non-growth or decline.
The Wave Principle
1.13
![Page 15: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/15.jpg)
Predict Market Direction
Identify turning Points
Provide Guidance for Entering and Exiting Positions
The Wave Principle
1.14
![Page 16: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/16.jpg)
2.00
![Page 17: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/17.jpg)
MOTIVE WAVES
Key Characteristics
� Five-wave structures, numbered 1-5
� In the direction of the main trend of one larger degree
� Wave 2 cannot retrace more than 100% of wave 1
� Wave 3 can never be the shortest and is often the longest
2.01
![Page 18: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/18.jpg)
MOTIVE WAVES
Five-Wave Structures
� Impulse
1. Extensions
2. Truncations
� Diagonal Triangles
2.02
![Page 19: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/19.jpg)
IMPULSE WAVES
Key Characteristics
� Wave 4 never enters the price territory of wave 1.
� Actionary waves 1, 3 and 5 are motive waves.
� Wave 3 is always an impulse wave.
2.03
![Page 20: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/20.jpg)
2.04
![Page 21: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/21.jpg)
2.05
![Page 22: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/22.jpg)
2.06
![Page 23: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/23.jpg)
2.07
![Page 24: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/24.jpg)
2.08
![Page 25: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/25.jpg)
EXTENSIONS
Key Characteristics
� Elongated impulse wave
� Appears in either wave 1, 3 or 5
� Often seen in wave 3 for the stock market
� Often seen in wave 5 in commodities
2.09
![Page 26: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/26.jpg)
2.10
![Page 27: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/27.jpg)
2.11
![Page 28: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/28.jpg)
2.12
![Page 29: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/29.jpg)
2.13
![Page 30: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/30.jpg)
2.14
![Page 31: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/31.jpg)
TRUNCATIONS
Key Characteristics
� Wave 5 does not exceed the end of wave 3
� Contains necessary five subwaves
� Often occurs after a strong third wave
2.15
![Page 32: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/32.jpg)
2.16
![Page 33: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/33.jpg)
2.17
![Page 34: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/34.jpg)
2.18
![Page 35: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/35.jpg)
DIAGONAL TRIANGLES
Key Characteristics
� Wave 4 almost always moves into the price territory of wave 1
� Waves 1, 3 and 5 are composed of three subwaves, not five
� Found at termination points of larger pattern, indicating exhaustion of larger pattern
� Normally has wedge shape within two converging lines
2.19
![Page 36: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/36.jpg)
Diagonal Triangles
2.20
![Page 37: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/37.jpg)
2.21
![Page 38: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/38.jpg)
2.22
![Page 39: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/39.jpg)
2.23
![Page 40: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/40.jpg)
2.24
![Page 41: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/41.jpg)
2.25
![Page 42: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/42.jpg)
2.26
![Page 43: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/43.jpg)
SUMMARY
The Wave Principle = Graphic of Mass Psychology
Motive Waves = 5 Wave Structures, Main Trend of One Larger Degree
Types of Motive Waves = Impulse, Diagonal Triangle
Impulse:Waves 1, 3, 5 = 5 Impulse Subwaves
(Extensions, Truncations)
Wave 4 ≠ Price Territory of Wave 1
Diagonal Triangle: Waves 1, 3, 5 = 3 Subwaves
Wave 4 = Price Territory of Wave 1
Signal = Imminent Major Trend Reversal
2.27
![Page 44: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/44.jpg)
3.00
![Page 45: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/45.jpg)
Characteristics of Corrective Waves
Zigzag3.01
![Page 46: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/46.jpg)
3.02
![Page 47: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/47.jpg)
Characteristics of Corrective Waves
Flat3.03
![Page 48: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/48.jpg)
3.04
![Page 49: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/49.jpg)
Triangle3.05
Characteristics of Corrective Waves
![Page 50: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/50.jpg)
Horizontal Triangles
3.06
![Page 51: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/51.jpg)
Barrier Triangles
3.07
![Page 52: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/52.jpg)
Running Triangles
3.08
![Page 53: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/53.jpg)
3.09
![Page 54: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/54.jpg)
3.10
![Page 55: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/55.jpg)
3.11
![Page 56: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/56.jpg)
3.12
![Page 57: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/57.jpg)
3.13
Characteristics of Corrective Waves
Combination
![Page 58: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/58.jpg)
3.14
Combination
![Page 59: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/59.jpg)
3.15
![Page 60: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/60.jpg)
3.16
![Page 61: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/61.jpg)
3.17
![Page 62: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/62.jpg)
Corrective Waves Summary
A B C D E Shape Position
Zigzag 5 3 5 Sharp Wave 2
Flat 3 3 5 Sideways Wave 4
Triangle 3 3 3 3 3 Sideways Wave 4
Combination X wave Sideways Wave 4
3.18
![Page 63: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/63.jpg)
Rules
� Of waves 1, 3 and 5, wave 3 can never be the shortest wave.
� Wave 2 can never retrace more than 100% of wave 1.
� The end of wave 4 can never overlap the orthodox end of wave 1.
Strong Guideline
� No portion of wave 4 can enter the price territory of wave 1 or wave 2.
4.00
![Page 64: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/64.jpg)
Rules
4.01
![Page 65: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/65.jpg)
Rules
4.02
![Page 66: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/66.jpg)
Rules
This five-wave move cannot be the start of a new trend. It can be wave C of a corrective pattern.
4.03
![Page 67: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/67.jpg)
Rules
What might this be?
Significant Bottom
4.04
![Page 68: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/68.jpg)
Rules
What might this be?
4.05
![Page 69: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/69.jpg)
Rules
Wave 3 is never the shortest of waves 1, 3 and 5. This could be part of a wave 3 extension.
4.06
![Page 70: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/70.jpg)
Rules
What might this be?Significant Bottom
4.07
![Page 71: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/71.jpg)
Rules
What might this be?
4.08
![Page 72: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/72.jpg)
Wave 4 does not overlap the price territory of wave 1. This could be the start of a 3rd
wave extension or an A-B-C correction.
Rules
4.09
![Page 73: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/73.jpg)
Guidelines
� Equality
� Alternation
� Depth
� Channeling
� Throw-Over
� Volume
� Post-Triangle Thrust Measurement
5.00
![Page 74: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/74.jpg)
Guidelines
Wave Equality
� Two of the motive waves in a five-wave sequence will tend toward equality in time and magnitude.
� This is generally true of the two non-extended waves.
� For example, if wave 3 is extended then waves 1 and 5 will tend toward equality.
5.01
![Page 75: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/75.jpg)
Equality
5.02
![Page 76: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/76.jpg)
Equality
5.03
![Page 77: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/77.jpg)
Guidelines
Alternation
Within Impulse Waves
� If wave 2 is a sharp correction, expect wave 4 to be a sideways correction, and vice versa.
� Sharp corrections never include a new price extreme. Example: Zigzags
� Sideways corrections usually include a new price extreme. Examples: Flats, Triangles, and Combinations
� Diagonal triangles do not display alternation in subwaves 2 and 4.
5.04
![Page 78: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/78.jpg)
Alternation within Impulse Waves
5.05
![Page 79: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/79.jpg)
Alternation within Impulse Waves
5.06
![Page 80: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/80.jpg)
Alternation within Impulse Waves
5.07
![Page 81: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/81.jpg)
Alternation within Impulse Waves
5.08
![Page 82: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/82.jpg)
Alternation within Impulse Waves
5.09
![Page 83: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/83.jpg)
Guidelines
Alternation
Within Corrective Waves
� If a correction begins with a flat a-b-c structure for wave A, then expect a zigzag a-b-c structure for wave B, and vice versa.
� If a large correction begins with a simple a-b-c zigzag for wave A, wave B will stretch out into a more complex a-b-c zigzag.
5.10
![Page 84: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/84.jpg)
Guidelines
Alternation within Corrective Waves
5.11
![Page 85: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/85.jpg)
Guidelines
Alternation within Corrective Waves
5.12
![Page 86: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/86.jpg)
Alternation within Corrective Waves
5.13
![Page 87: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/87.jpg)
Alternation within Corrective Waves
5.14
![Page 88: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/88.jpg)
Alternation within Corrective Waves
Zigzag5-3-5
5.15
![Page 89: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/89.jpg)
Guidelines
Depth of Corrective Waves
Corrections, especially when they are fourth waves, tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree and most commonly near its terminus.
5.16
![Page 90: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/90.jpg)
Guidelines
Depth of Corrective Waves
5.17
![Page 91: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/91.jpg)
Depth of Corrective Waves
5.18
![Page 92: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/92.jpg)
Depth of Corrective Waves
5.19
![Page 93: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/93.jpg)
Guidelines
Channeling
A parallel trend channel typically marks the upper and lower boundaries of impulse waves and zigzag corrective waves.
5.20
![Page 94: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/94.jpg)
Guidelines
Channeling in Impulse Waves
5.21
![Page 95: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/95.jpg)
Channeling in Impulse Waves
5.22
![Page 96: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/96.jpg)
Channeling in Impulse Waves
5.23
![Page 97: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/97.jpg)
Channeling in Impulse Waves
5.24
![Page 98: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/98.jpg)
Channeling in Impulse Waves
5.25
![Page 99: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/99.jpg)
Channeling in Impulse Waves
5.26
![Page 100: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/100.jpg)
Channeling in Impulse Waves
5.27
![Page 101: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/101.jpg)
Guidelines
Channeling in Zigzags
5.28
![Page 102: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/102.jpg)
Channeling in Corrective Waves
5.29
![Page 103: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/103.jpg)
Channeling in Corrective Waves
5.30
![Page 104: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/104.jpg)
Channeling in Corrective Waves
5.31
![Page 105: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/105.jpg)
Guidelines
Throw-Over
5.32
![Page 106: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/106.jpg)
Throw-Over
5.33
![Page 107: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/107.jpg)
Guidelines � Volume
Waves < Primary Degree
Normally, 3rd wave volume > 5th wave volume5th wave volume > 3rd wave volume = 5th wave extension
Waves > Primary Degree
Higher volume in 5th wavesAll-time high volume at terminal points in bull markets
� Volume often spikes briefly at the throw-over point of a parallel trend channel line or a diagonal triangle resistance line.
� Volume contracts in corrective waves.
5.34
![Page 108: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/108.jpg)
Volume
5.35
![Page 109: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/109.jpg)
Post-Triangle Thrust Measurement
5.36
![Page 110: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/110.jpg)
5.37
![Page 111: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/111.jpg)
5.38
![Page 112: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/112.jpg)
Summary
� Two motive waves in a five wave sequence will tend toward equality.
� If the second wave is sharp, then the fourth wave is usually sideways, and vice versa.
� Corrective waves usually end in the span of the previous fourth wave of one lesser degree.
� Impulse waves tend to be bounded by a channel composed of two parallel lines.
� A throw-over/throw-under occurs when wave 5 terminates beyond the trend channel.
� The post-triangle thrust measurement estimates price target for the next wave in the pattern of one larger degree.
5.39
![Page 113: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/113.jpg)
Wave Personality
6.00
![Page 114: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/114.jpg)
Wave Personality
6.01
![Page 115: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/115.jpg)
The Golden Ratio
PHI Φ
.618 or 1.618
Fibonacci Relationships In Financial Markets
7.00
![Page 116: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/116.jpg)
Golden Ratio, PHI, Φ
7.01
![Page 117: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/117.jpg)
Golden Ratio, PHI, Φ
7.02
![Page 118: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/118.jpg)
Fibonacci Relationships are Seenin Time and Amplitude
� Retracements
� Multiples
7.03
![Page 119: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/119.jpg)
Retracements
7.04
![Page 120: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/120.jpg)
Retracements
7.05
![Page 121: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/121.jpg)
Retracements
7.06
![Page 122: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/122.jpg)
Retracements
7.07
![Page 123: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/123.jpg)
Retracements
7.08
![Page 124: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/124.jpg)
Multiples in Impulse Waves
7.09
![Page 125: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/125.jpg)
Multiples in Impulse Waves
7.10
![Page 126: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/126.jpg)
Multiples in Impulse Waves
7.11
![Page 127: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/127.jpg)
Multiples in Impulse Waves
Net of waves 1 through 3 times .382 = percent movement of wave 5
7.12
![Page 128: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/128.jpg)
Multiples within Corrective Waves � Zigzags
7.13
![Page 129: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/129.jpg)
Fibonacci Time Relationships
7.14
![Page 130: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/130.jpg)
Fibonacci Time Relationships
7.15
![Page 131: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/131.jpg)
Summary
� The Fibonacci Ratio (Φ), an irrational number approximating .618, known as the Golden Ratio, is found in nature, human biology, human thought, and aggregate human behavior such as the stock market.
� The Wave Principle is a robust fractal governed by Fibonacci mathematics.
� Sharp wave corrections tend to retrace 61.8% or 50% of the previous wave.
� Sideways corrections tend to retrace 38.2% of the previous wave.
� Subdivisions of impulse waves tend to be related by Fibonacci numbers .618, 1.0, 1.618 and 2.618.
� Subdivisions of corrective waves tend to be related by Fibonaccinumbers .382, .618, 1.0 and 1.618.
7.16
![Page 132: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/132.jpg)
The Basics of the Wave Principle
Summary
8.00
![Page 133: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/133.jpg)
8.01
![Page 134: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/134.jpg)
1 2 3
4 5 6
8.02
![Page 135: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/135.jpg)
8.03
![Page 136: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/136.jpg)
8.04
![Page 137: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/137.jpg)
Rules
8.05
![Page 138: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/138.jpg)
Equality
8.06
![Page 139: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/139.jpg)
Alternation within Impulse Waves
8.07
![Page 140: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/140.jpg)
Alternation within Corrective Waves
8.08
![Page 141: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/141.jpg)
Depth of Corrective Waves
8.09
![Page 142: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/142.jpg)
Channeling in Impulse Waves
8.10
![Page 143: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/143.jpg)
Throw-Over
8.11
![Page 144: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/144.jpg)
Volume
8.12
![Page 145: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/145.jpg)
Post-Triangle Thrust Measurement
8.13
![Page 146: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/146.jpg)
Wave Personality
8.14
![Page 147: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/147.jpg)
The Golden Ratio
PHI Φ
.618 or 1.618
Fibonacci Relationships In Financial Markets
8.15
![Page 148: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/148.jpg)
Retracements
8.16
![Page 149: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/149.jpg)
Multiples in Impulse Waves
8.17
![Page 150: The Basics of the Wave Principledl.farachart.com/movie/english/ElliottWave_WayneGorman/...The Basics of the Wave Principle Presented by Wayne Gorman, Senior Tutorial Instructor Elliott](https://reader030.vdocuments.net/reader030/viewer/2022040119/5e68a7523e55ec7b1b19f8aa/html5/thumbnails/150.jpg)
Elliott Wave International
770-536-0309 or 800-336-1618
www.elliottwave.com