Diagonal

Rules

  • A diagonal subdivides into 5 waves
  • Wave 2 cannot retrace more than 100% of wave 1
  • Wave 3 cannot be the shortest of the three action waves, 1,3, and 5
  • Wave 3 always goes beyond wave 1
  • A diagonal appears only as wave 1(leading) or 5(ending) of an impulse or as wave A(leading) or C(ending) of a zigzag
  • All 5 subwaves of an ending diagonal are decomposed in zigzags
  • Waves 2 and 4 of a leading diagonal are decomposed in zigzags
  • Wave 4 never moves beyond the end of wave 2
  • Wave 4 always overlaps wave 1
  • Contracting diagonals have always a shorter 3rd wave relative to their 1st wave
  • Contracting diagonals have always a shorter 5th wave relative to their 3rd wave
  • Contracting diagonals have always a shorter 4th wave relative to their 2nd wave
  • Expanding diagonals have always a longer 3rd wave relative to their 1st wave
  • Expanding diagonals have always a longer 5th wave relative to their 3rd wave
  • Expanding diagonals have always a longer 4th wave relative to their 2nd wave
  • A leading, as well as an expanding diagonal, is never truncated

  • Guidelines

    • Diagonal occur because of transitory forces of trend changes act against each other
    • Waves 2 and 4 retrace a great proportion (at least 50%) of their preceding wave
    • Ending diagonals are rare
    • Generally, count diagonals in real-time once wave 4 is almost complete
    • Sometimes the zigzags may subdivide further into double zigzags
    • Ending diagonals usually cause substantial reversals
    • Expanding leading diagonals appear sometimes at the start of stock market declines

Technical Analysis