Gorman and Kennedy, CMT1 Appendix A

Appendix A: Introduction to the Wave Principle

• Intro
• The Basic Pattern
• Motive Waves
  • Impulse
    • 3 Rules
      • Wave 2 never moves beyond the start of wave 1 (2 retraces less than 100% of 1).
      • Wave 3 is never the shortest motive subwave, but it does not have to be the longest.
      • Wave 4 never enters the price territory of wave 1
    • See Picture of correct and incorrect counting based on these rules
  • Extension
  • Truncation
  • Diagonal
• Corrective Waves
  • Zigzag
  • Flat
    • Regular Flat
    • Expanded Flat
    • Running Flat
  • Triangle
    • Contracting (upper line declining, lower line rising)
    • Barrier (outer line flat, inner line sloping with larger trend)
    • Expanding (upper line rising, lower line declining)
    • Running Triangle
    • Post-Triangle Thrust Measurement
  • Combination
• Fibonacci Relationships
  • Intro
    • Double Three Combination
  • Retracements
  • Multiples
  • Dividers
  • Clusters
• For More Information
  • www.elliottwave.com/wave/ReaderResources