GALAUSDT

idea 4 (IMPULSE)

Rules:

An impulse consists of 5 internal waves.
Wave 1 and 5 always have to be impulses or diagonals
Wave 3 always has to be an impulse by itself (i.e. can’t be a diagonal)
Wave 3 must never be the shortest (in terms of percentage gain/loss) within the sequence
Wave 2 is always a corrective pattern and must not retrace more than 100% of wave 1
Wave 2 can be any corrective pattern except a triangle (but it can be a complex combination (wxy or wxyz) that ends with a triangle)
Wave 4 must not enter the price territory of wave 1
Wave 4 must always be a corrective pattern (any)
Guidelines:

Waves 2 and 4 tend to create alternation between each other (as outlined in the introduction of this guide)
Wave 2 usually retraces to deeper levels of wave 1 than wave 4 does relative to wave 3
Wave 2 develops more commonly as a simple corrective pattern (i.e. zigzag or double/triple zigzag)
Wave 4 develops more commonly as a complex corrective pattern (i.e. triangle, double/triple threes, flat)
In almost all impulses, one of the action waves (1,3, or 5) becomes extended, and it is most commonly wave 3
Extended waves can contain several further extensions within them
Wave 5 can fail to go beyond wave 3 (truncation) but it is not very common. It usually happens when wave 3 has been exceptionally long and overstretched. Truncation often results in significant reversals.
Wave 5 is most likely not going to form a diagonal if wave 3 is not extended
An impulse is not over until all sub degrees are finished (e.g. 5 of 5 of 5). The wave count takes precedence over channel lines and Fibonacci targets
Wave 3 almost always exhibits the greatest volume. If volume during the 5th wave is as high as the 3rd, expect an extended 5th wave.
Elliott Wave Fibonacci Retracement and Extension Guidelines:

If wave 1 is extended, then the size of wave 3 through to the end of wave 5 is often 61.8% – 78.6% relative to the size of wave 1
If wave 1 is extended, then wave 2 and 4 are very likely to be shallow (i.e. 23.6% – 38.2%)
If wave 1 is extended, then wave 2 will often end at the level of sub-wave 4 of 1 (i.e. the internal wave 4 of wave 1)
If wave 2 retraces more than 78.6% of wave 1, the idea that it really is a wave 2 becomes more doubtful (possible A-B?)
If wave 3 is extended, then wave 1 and 5 are often nearly equal in magnitude and duration. If equality is lacking, a 61.8% relationship is next most likely.
If wave 3 is extended, then wave 4 often ends at the level of sub-wave 4 of 3 and is quite shallow (retraces 23.6% – 38.2% of wave 3)
If wave 3 is extended and very vertical, it will likely overshoot the trend channel that can be drawn when placing the anchor points at the extremities of wave 1, 2 and 4. However the channel is still very valid for gauging the end of wave 5 (see image)
If wave 4 retraces more than 50% of wave 3, it is quite often not a wave 4.
Wave 5 is likely to become extended if wave 1 and 3 are equal in size.
If wave 5 is extended, then it often finishes at the 161.8% extension relative to the magnitude of wave 1 through to 3 (see image)
If wave 5 is extended, then the ensuing correction is often sharp and swift and ends near the extreme of sub-wave 2 of the extension. This does not apply when the market is ending a 5th wave simultaneously at more than one degree.