Impulse Wave
A five-sub-wave structure (1-2-3-4-5) that moves in the direction of the larger Elliott Wave trend — the core engine of directional moves.
An Impulse Wave is the five-sub-wave engine within Elliott Wave Theory. Sub-waves 1, 3, and 5 travel with the trend; sub-waves 2 and 4 are retracements.
Key rules: Wave 2 cannot retrace past the start of Wave 1. Wave 3 is never the shortest of waves 1, 3, and 5. Wave 4 cannot overlap the price territory of Wave 1 in a standard impulse.
Wave 3 is typically the longest and most powerful sub-wave — it is where the biggest trending move occurs and where trend-following setups have the highest follow-through.
Related Terms
Corrective Wave
A counter-trend three-wave (A-B-C) structure within Elliott Wave Theory that retraces part of the prior impulse before the trend resumes.
AdvancedElliott Wave Theory
A fractal model of market cycles: price moves in five waves with the trend and three corrective waves against it, repeating at every time frame.
AdvancedThree Drives Pattern
Three symmetrical price drives toward a reversal point, each drive an equal Fibonacci extension — signals exhaustion of the dominant trend.
AdvancedWolfe Wave
A five-wave price structure where the fifth wave overshoots a channel, signalling a sharp snap-back to the 1-4 trendline.
Advanced