1.Wave 1,3 and 5 must be also impulsive structures.
Wave 2 must retrace less than 100% of wave 1 and it usually ends at 50-76.4 Fibonacci retracement area. It can’t be a triangle structure.
Wave 3 cannot be the shortest one and it’s usually the strongest. It should extend 1.618 Fibonacci extension of wave 1 and it could go up to 2.618 Fib extension or more.
Wave 4 is usually a shallow correction which should ideally end at 23.6 fib retracement area. It could go to 38.2 fib retracement as well but it must not break below/above 50 Fibonacci retracement from the start of wave 3.
There always must be RSI divergence between wave 5 and wave 3 and each impulsive subdivision (wave 1, wave 3 and wave 5) should have RSI divergence in its internals.
Wave 2 must retrace less than 100% of wave 1 and it usually ends at 50-76.4 Fibonacci retracement area. It can’t be a triangle structure.
Wave 3 cannot be the shortest one and it’s usually the strongest. It should extend 1.618 Fibonacci extension of wave 1 and it could go up to 2.618 Fib extension or more.
Wave 4 is usually a shallow correction which should ideally end at 23.6 fib retracement area. It could go to 38.2 fib retracement as well but it must not break below/above 50 Fibonacci retracement from the start of wave 3.
There always must be RSI divergence between wave 5 and wave 3 and each impulsive subdivision (wave 1, wave 3 and wave 5) should have RSI divergence in its internals.