Section 2 2.3 Wave Equality One of the guidelines of the Wave Principle is that 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 when one wave is an extension, and it...

Section 2 2.2 Depth of Corrective Waves No market approach other than the Wave Principle gives a satisfactory answer to the question, "How far down can a bear market be expected to go?" The primary guideline is that corrections, especially when they themselves are...

Section 2 Motive Waves 2.1 Guidelines of Wave Formation The guidelines presented throughout this chapter are discussed and illustrated in the context of a bull market. Except where specifically excluded, they apply equally in bear markets, in which context the...

Section 1 1.8 Additional Terminology (Optional) Terms that Denote Purpose Though action in five waves is followed by reaction in three waves at all degrees of trend regardless of direction, progress begins with an actionary impulse, which by convention is graphed in...

Section 1 1.7 Corrective Waves Markets move against the trend of one greater degree only with a seeming struggle. Resistance from the larger trend appears to prevent a correction from developing a full motive structure. This struggle between the two...

Section 1 1.6 Detailed Analytics Motive Waves Motive waves subdivide into five waves and always move in the same direction as the trend of one larger degree. They are straightforward and relatively easy to recognize and interpret. Within motive waves, wave 2 always...