Impulse
Impulse Wave
A five-wave motive pattern (1-2-3-4-5) that moves in the direction of the trend at the next larger degree. Impulse waves have three strict rules: Wave 2 never retraces 100% of Wave 1, Wave 3 is never the shortest impulse wave, and Wave 4 never enters Wave 1 price territory.
EXAMPLE
A bullish impulse: Wave 1 rallies, Wave 2 corrects, Wave 3 surges (longest), Wave 4 consolidates, Wave 5 makes the final push higher.
RELATED TERMS
Motive Wave
Any wave pattern that propels prices in the direction of the next larger degree ...
Wave 1
The first impulse wave in a five-wave sequence. Wave 1 is often the hardest to i...
Wave 3
Usually the longest and most powerful impulse wave. Wave 3 is never the shortest...
Wave 5
The final impulse wave in the motive sequence. Wave 5 completes the trend and is...