Impulse
Wave 4
The second corrective wave within an impulse sequence. Wave 4 never overlaps with Wave 1 price territory (strict rule). It commonly retraces 38.2% of Wave 3. Wave 4 corrections tend to be sideways (flats and triangles), alternating with Wave 2.
RELATED TERMS
Wave 1
The first impulse wave in a five-wave sequence. Wave 1 is often the hardest to i...
Alternation
A guideline suggesting that if Wave 2 is a sharp correction, Wave 4 will likely ...
Triangle
A five-wave sideways corrective pattern labeled A-B-C-D-E. Triangles form conver...
Flat
A three-wave corrective pattern (A-B-C) where Wave A is three waves, Wave B retr...