There are four different variations of a 5 wave move: 1- Impulse wave, 2- Impulse with Extension 3- Impulse with Truncation 4- Diagonal.
Five wave structures : 1- Impulse: 1-1 Extensions : Appears in either wave 1, 3 or 5. 1-2 Truncations : wave 5 does not exceed the end of wave 3. often occurs after a strong third wave.
2- Diagonal triangles: Leading Diagonal, Ending Diagonal Wave 4 almost always moves into the price territory of wave 1. Normally has wedge shape
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.