Impulse Waves - Elliott Wave International

Elliott Wave Educational Video SeriesCharacteristics ofImpulseWavesWorkbook 3

WORKBOOKfor theELLIOTT WAVE EDUCATIONAL VIDEO SERIESWORKBOOK 3CHARACTERISTICS OF IMPULSE WAVESCopyright © 1990 byRobert R. Prechter, Jr.Printed in the United States of AmericaJanuary 1990For information, address the publishers:Elliott Wave InternationalP.O. Box 1618Gainesville, Georgia 30503NOTICEAll charts are copyright © Robert R. Prechter, Jr. 1990 or have been previouslycopyrighted by Elliott Wave International, Robert R. Prechter, Jr., or otherentities. All rights are reserved. The material in this volume may not be reprintedor reporduced in any manner whatsoever without the written permission of thecopyright holder. Violators will be prosecuted to the fullest extent of the law.ISBN: 0-932750-25-7Elliott Wave Educational Video Series10 Volume videotape set including workbooksISBN: 0-932750-28-1Elliott Wave Educational Video SeriesTape 3 and Workbook 3:Characteristics of Impulse WavesACKNOWLEDGEMENTSBackground charts for some of the illustrations were provided courtesy of the following sources:Trendline (Standard & Poor’s Corp.), 25 Broadway, New York, NY 10004Daily Graphs (William O’Neil & Co., Inc.), P.O. Box 24933, Los Angeles, CA 90024Commodity Research Bureau, 75 Wall St., 22nd Fl., New York, NY 10005Ned Davis Research, P.O. Box 1278, Nokomis, FL 34274Foundation for the Study of Cycles, 3333 Michelson Dr., Irvine, CA 92715Commodity Perspective, 30 S. Wacker Dr., Chicago, IL 60606Securities Research Company, 208 Newbury St., Boston, MA 02116

Workshop Handout SheetIMPULSE WAVES — CHARACATERISTICSEXTENSIONS— usually appear in one of three impulse waves— occur in one and only one of the impulse waves— are always fives themselves, so may also contain extension— subdivisions are of same amplitude and duration of main wavesFAILURES— 5th wave fails to exceed 3rd wave extreme— must contain necessary five subdivisions— subsequent moves are sharp reversalsDIAGONAL TRIANGLES (Type 1)— subdivide 3-3-3-3-3— occur only in 5th or c waves— wave 4 can and usually does overlap wave 1— develop a wedge shape, between 2 converging lines— proportionate to prior movement— sometimes have sharp, last gasp break through trendline— subsequent moves are sharp reversalsDIAGONAL TRIANGLES (Type 2)— very rare— subdivide 5-3-5-3-5— occur only in A waves (substitute for A in zigzag pattern)— wave 4 can and usually does overlap wave 1— develop a wedge shape, between 2 converging linesSee Elliott Wave Principle pps. 25 - 34 or the Elliott Wave Workshop Workbook pps.2.4 - 2.16 for diagrams.Note: For your reference this workbook includes the original page numbers used during the actual presentation,located at the bottom center of each page, in addition to being consecutively numbered in the right-hand corner.

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves35142Bull Market TruncationReprinted fromElliott Wave PrincipleCopyright © 1978Robert R. Prechter, Jr. and A.J. Frost(3)1(5)5342(4)(1)(2)2.481

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesReprinted from Elliott Wave PrincipleCopyright © 1978 Robert R. Prechter, Jr. and A.J. Frost2.12



Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves1.155


Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesNovember 7, 1983“If 1158 is broken, the next point of support is 1090,which marks a .382 retracement of Primary 1.”July 24, 1984 (Interim Report)“Today’s slight new closing low in the Dow at 1086.57generated ‘sell signals’ all over Wall Street. However, itappears to me that, just like the May 30 low and theJune 15 low, this minor decline is actually providinganother excellent opportunity to buy. The July 11 issueprojected that ‘the next cyclic lows of importance aredue July 24-26.’ We have entered that time period, andthe wave count indicates a potential turn to the upsidewithin a few trading hours. Based on typical Fibonaccirelationships, I doubt that our ‘stop’ at Dow 1070 hourlyreading will be taken out. Taking in all the price actionto the present, Dow 1083 (+ or -5) is a very strongsupport level.”Note: The actual hourly low occurred two trading hourslater at Dow 1083.59.1.277


Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesBull MarketBear Market35142214First Wave Extension355212314Third Wave Extension345523141432Fifth Wave Extension59721345681435682Extension Not Identified79Reprinted from Elliott Wave PrincipleCopyright © 1978 Robert R. Prechter, Jr. and A.J. Frost2.49

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesJune 10, 1980: “The chart indicates a bottom directly at hand for the first time since the peak, I expect one moremini-wave down to slight new lows. A perfect target for 90-day T-bills would be 6.38%.”Just six days later, this table appeared in the Wall Street Journal,showing the June 13 low reading for the 90-day T-bills.1.3810

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesReprinted fromElliott Wave PrincipleCopyright © 1978Robert R. Prechter, Jr. and A.J. Frost2.511

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesFive waves of Primary Degree2.6Reprinted from Elliott Wave PrincipleCopyright © 1978 Robert R. Prechter, Jr. and A.J. Frost12

Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves13


Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves35142Bull Market TruncationBull Market Truncation2Bear Market Truncation1435Reprinted from Elliott Wave PrincipleCopyright © 1978 Robert R. Prechter, Jr. and A.J. Frost2.815



Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves(3)13(5)542(4)(1)(2)Reprinted fromElliott Wave PrincipleCopyright © 1978Robert R. Prechter, Jr. and A.J. Frost(2)(1)(4)2(3)1345(5)2.1118





Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse WavesCopyright © 1990 or previously by Robert R. Prechter, Jr.2.1523


Elliott Wave Educational Video Series — Workbook 3: Characteristics of Impulse Waves1-770-536-0309 (outside the U.S.)or 1-800-336-1618 (inside the U.S.)25

Impulse Waves - Elliott Wave International

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