Reference
Rulebook.
Rules, patterns, degrees & Fibonacci — everything in one place.
If ANY Hard Rule is broken, the wave count is 100% invalid. No exceptions.
Foundational · tap to flip
The Seven Foundational Rules (Section 3.1)
R1
Wave 2 never retraces more than 100% of Wave 1
Test: End of W2 must not exceed origin of W1
R2
Wave 3 is never the shortest motive wave
Test: W3 must be longer than at least one of W1 or W5 in price
R3
Wave 4 never closes within Wave 1 price territory
Test: Judged on CLOSING price — intraday wicks don't count. Diagonals are exempt (overlap is required). Also excepted for leveraged instruments.
R4
Impulse waves have exactly 5 sub-waves
Test: Count must be precisely 5
R5
Sub-waves 1, 3, 5 of an impulse are always motive
Test: Each must subdivide into 5 waves (impulse or diagonal)
R6
Sub-waves 2, 4 of an impulse are always corrective
Test: Each must subdivide into a corrective pattern (3 waves or variant)
R7
Corrective waves never subdivide into 5 in the correction direction
Test: A 5-wave move against trend = correction is not yet complete
Additional Structural Rules (Section 3.2) — Also Mandatory
R8
Wave 2 of an impulse is never a triangle
Test: Triangles only appear in Wave 4, Wave B, or Wave X positions
R9
Wave 1 of an impulse is never a flat or triangle
Test: Wave 1 is always an impulse or leading diagonal — never a corrective pattern
R10
Zigzag rules: A = 5 waves, B < 100% of A, C = 5 waves
Test: All three must hold for a valid zigzag. If B ≥ 100% of A, it's a flat, not a zigzag
R11
Flat rules: A = 3 waves, B retraces ≥ 90% of A, C = 5 waves
Test: A must be 3 (not 5 — that's a zigzag). B must reach at least 90% of A
R12
X waves in double/triple combinations are always corrective
Test: X waves connect corrective structures — they are never impulses
R13
Triangle: 5 waves A-B-C-D-E; contracting: C<A, D<B, E<C
Test: Each sub-wave = 3. Triangle never appears as first structure (W) in a combination
R14
Ending diagonal: all 5 sub-waves = 3 waves each, W4 overlaps W1
Test: Only in W5 or WC position. Converging trendlines. Sharp reversal follows completion
R15
Leading diagonal: Wave 1 or Wave A position only, W4 overlaps W1
Test: Sub-waves can be 5-3-5-3-5 or 3-3-3-3-3. Converging trendlines. Less common than ending diagonal