October 22, 2021

NeoWave Wave Theory by Glenn Neely. Description of conditions for the fifth rule – c and d. We begin our acquaintance with the sixth rule – condition a.

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NeoWave Wave Theory by Glenn Neely. Description of conditions for the fifth rule - c and d. We begin our acquaintance with the sixth rule - condition a.

We continue to consider the fifth rule of wavelength relations. Next, conditions c and d.

Rule 5

First, let me remind you, that the fifth rule works, when the wave m2 moves in the opposite direction with respect to m1 and reaches from 100% up to 161,8% (not including) its length. When measuring the ratios m0 to m1, we select one of the following conditions and assign the structure symbols corresponding to the selected condition to the waves.

Condition (c). m0 from 161,8% up to 261,8% (inclusive) m1

1. If the amplitude of m3 is between 61,8% up to 161,8% inclusive length m1, and m2 is less than 61,8% length m0, and m4 is greater than or equal to m2, and m4 or group, consisting of waves m4–m6, equal or greater in length m0, then m1, most likely, is the first segment of any kind of irregular flat or moving triangle. So its endpoint should be marked «:F3».

2. If the price amplitude m3 is within 101–161,8% length m2, the probability of the formation of an expanding triangle is not so great. Therefore, at the end point we put «:c3».

3. If the level of the starting point m2 (plus one unit of time) achieved over a period of time less than or equal to the duration of the development of this wave, m(-1) inferior in length to m0, and m0, in turn, equal to or greater than at least one of the waves m(-2) and m2, price projections m(-1) and m1 overlap, and the level of the starting point m (-2) achieved over time, no more than half the wave formation time m(-2)–m2, then there is the possibility of forming a terminal price figure, whose last segment is m2. So we add the notation to the structural list «(:sL3)». Remind you, that I wrote about the differences between terminal patterns and trend patterns in the second article on NeoWave theory.

4. If the price amplitude m3 is less than 61,8% similar parameter m2, waves m1 and m3 at least partially overlap, m4 shorter m2, entry level m4 (plus one unit of time) achieved in time, less, than the duration of this wave, and the initial level m0 is reached in time, less, than the formation time of the wave group m0–m4, then m4 may represent the final segment of the terminal price figure. At the endpoint m1 we put the notation «-:c3».

5. If the level of the starting point is m1 (plus one unit of time) achieved over time, less than or equal to the duration of its formation, wavelength m2 almost reaches 161,8% m1, length m3 less than 61,8% length m2, length m(-1) is at least 61,8% length m0, length m(-2) is in the range from 61,8% up to 161,8% amplitudes m(-1), length m(-3) ranging from 61,8% up to 161,8% length m(-2) and the price projection m0 is inferior to the price projection of the wave group m2–m4, then m1, probably, is the final segment of a tapering triangle. So we add the notation to the structural list «:L3».

6. If the level of the starting point is m1 (plus one unit of time) achieved over time, less than or equal to the duration of its formation, and the price span m1 is about 61,8% length m0 and at the same time does not exceed 161,8% length m(-1), amplitude m2, in turn, close to 161,8% length m1, length m3 less than 61,8% amplitudes m2 and the price projection m0 is inferior to the price projection of the group of waves m2–m4, then m1, probably, is the final segment of any flat price figure. So in the structural list we add the notation «:L5».

7. If none of the above conditions is met, add to the structure list «:F3».

Check, Does the current market situation meet the criteria for the condition? (c) rules 5. Wave m2 moves in the opposite direction with respect to m1 and reaches from 100% up to 161,8% its length. Hence, the requirements of the fifth rule are met.

The amplitude of m0 is from 261,8% length m1, which means in our case the condition (c) rules 5.

Since the amplitude of m3 is from 61,8% up to 161,8% inclusive length m1, and m2 is less than 61,8% m0 and m4 (red area on the chart) significantly more m2 (blue area), and m4 is slightly longer than m0 (green area), then in our case the first paragraph of rule 5 of the condition holds (c). Therefore m1, most likely, is the first segment of any kind of irregular flat or moving triangle. So its endpoint should be marked «:F3».

Condition (d). m0 over 261,8% m1

1.  If m2 is a multi-wave and consists of more than three monowaves, then its endpoint should be written as «:F3».

2.  If the level of the starting point m2 (plus one unit of time) achieved over a period of time less than or equal to the duration of the development of this wave, m(-2) inferior in length to m0, and after the completion of the wave m2, the level of the initial point m(-2) is achieved (or even intersects) for a period of time, no more than 50% the duration of the development of the wave group m(-2)–m2, then m2 can complete the terminal price figure with a stretched third. Add to the structure list «(:sL3)».

3.  If the amplitude m3 is less than 61,8% length m2, waves m1 and m3 do not overlap, initial level m4 is reached in time, less, than the duration of this wave, and the initial level m0 is reached in time, less, than the formation time of the wave group m0–m4, then m4 can complete the terminal price figure. Means, at the endpoint m1, the notation «:c3».

4.  If the length of m3 is less than 61,8% amplitude m2, price projection of wave group m2–m4 more, and the time duration is shorter (moves at a more vertical angle) similar characteristics m0, and amplitude m(-1) is not less than 61,8% length m0, then we should take into account the small probability that the wave m1 ends in a tapering triangle. Add to the structure list «(:L3)».

5.  If the length of m3 is less than 61,8% amplitude m2, wave group m2–m4 moves at a more vertical angle compared to m0 and the amplitude m(-1) approximately equal to the similar parameter m0, and time duration m0 is greater than durations m(-1) and m1, it is worth considering the small probability of completion by the wave m1 «strict» flat with failed c. Add to the structure list «[:L5]». I will notice, that complex figures, such as «strict» flat with failed C we will consider in the following articles.

6.  If the price amplitude m3 is between 61,8% up to 100% length m2, length m4 less than 61,8% amplitudes m0, and the time duration m1 is inferior to the similar parameter m0, then m1 with high probability may be the x-wave of complex correction. At its endpoint we put the notation «x:c3».

7.  If the amplitude of m3 is between 61,8% up to 100% length m2, length m4 is 61,8% amplitudes m0 and more, then at the endpoint m1 we put the notation «:F3».

8.  If the amplitude m3 is less than 61,8% from m0, then at the endpoint m1 we put the notation «:F3/:c3».

9.  If the amplitude m3 is at least 61,8% length m1, but m3 is inferior in length to m2, wave m4 is equal to or greater than m2, as well as m4 or a group of waves m4–m6 does not cross the endpoint level m3, and m4 is at least 61,8% amplitudes m0, then m1, probably, is the initial segment of the irregular failed flat. At the endpoint m1 we put the notation «:F3».

10. If none of the preceding conditions is met, the designation should include the designation «:F3».

Check, Does the current market situation meet the criteria for the condition? (d) rules 5. Wave m2 in relation to m1 reaches from 100% up to 161,8% its length. Hence, the requirements of the fifth rule are met.

The amplitude m0 is noticeably greater than 261,8% wavelength m1. In our case, there is a condition (d) rules 5.

Since the amplitude m3 is at least 61,8% (actually just over 100%) length m1, m3 is also inferior in length to m2,

wave m4 is many times longer than m2, and the wave group m4–m6 does not cross the endpoint level m3, and the length of m4 is noticeably greater than 61,8% amplitudes m0, then in our case paragraph 9 of the category is satisfied (d). Means, m1, most likely, is the initial segment of the irregular failed flat. At the endpoint m1 we put the notation «:F3».

Rule 6

Wave m2 moves in the opposite direction with respect to m1 and reaches from 161,8% up to 261,8% (inclusive) its length. When measuring the ratios m0 to m1, we select one of the following conditions and assign the structure symbols corresponding to the selected condition to the waves.

Condition (a). m0 less than 100% m1.

This condition should be considered in the context of cases, when the m2 wave consists more, than from three monowaves and from three or less monowaves.

If m2 is multi-wave and consists of more, than from three monowaves.

1. If the length of the first three monowaves m2 is not more than 61,8% wave amplitudes m1, then the first or second of these monowaves, formed immediately after the wave m1, may start a complex correction. In this case, the initiating correction of the monowave should be directed opposite to m1 and may be an x-wave. In alternative cases, the x-wave is contained in the center m1, that is, is «invisible», either m1 is the third wave of a trend or terminal impulse price pattern with a failed fifth. So in the structure list m1 we add the notation «:5/:s5».

Considering the situation, when the x-wave is missing, you should circle the central part m1 in a circle to the left of it write «:5?», and right – «:F3?».

The option to complete a complex correction will be confirmed immediately before the point, where the market will dramatically change its direction (opposite to the direction m1), and the amplitude of m2 will be more than 61,8% length m1.

2.  If the length of the first three monowaves m2 is more than 61,8% length m1, then m1 can either complete the a-wave plane, in which there is a complex b-wave, or the third wave of a pulsed price figure with a failed fifth. In this case, we put at the endpoint m1 «:F3/:5».

If m2 is a multi-wave and consists of no more than three monowaves (or groups of monowaves) either is monowave.

1.  If the amplitude m3 is at least 61,8% length m2, then the endpoint m1 should be denoted «:L5». If in this case the price projections m also overlap(-2) and m0, then add to the structure list «:L3».

2.  If the level of the starting point is m1 (plus one unit of time) achieved over the period, not exceeding the duration of development m1, then this wave can be the final segment of the price pattern of the trend impulse and at its final point should be set «:L5».

3.  If the level of the starting point is m1 (plus one unit of time) achieved over the period, less than or equal to the time of its formation, m3 inferior in length to m2, m2, in turn, or wave group m2–m4, reaches or crosses the level of the starting point of the wave m(-3) during, no more than 50% the time interval for the formation of a group of waves m(-3)–m1, and the waves m0 and m(-2) overlap, then m1 may be the final segment of the terminal pulse, and to its structural list should be added «(:L3)».

If, under all these conditions, the amplitude m4 is in the range of 61,8% up to 100% length m2 (not including borders) and «:L3» is the preferred designation, then the wave m2, probably, is an x-wave or a terminating wave m1. The endpoint m2 should be marked «x:c3?». In this case, the terminal price figure, probably, will be part of a higher order triangle.

4.  If the level of the starting point m1 is reached more slowly, than the speed of development of this wave, m2 does not cross the endpoint level m(-2), amplitude m(-1) is at least 61,8% length m1, and m(-2) inferior in price length m(-1), then m1, most likely, is an a-wave of a flat price figure, which completes a complex correction. In this case, the x-wave is m0. And that means, at the endpoint m0, put the notation «x:c3?», and at the endpoint m1 – «:F3».

Check, Does the current market situation meet the criteria for the condition? (a) rules 6. The amplitude of the m2 wave is just over 161,8% length m1. Hence, the requirements of the sixth rule are met.

The amplitude m0 is about half (i.e. less than 100%) wavelength m1. So in our case there is a condition (a) rules 6.

Since the amplitude m3 is at least 61,8% length m2, then the endpoint m1 should be denoted «:L5». This designation is also confirmed by, that the level of the starting point m1 (horizontal pink line on the chart) achieved over the period, not exceeding the duration of development m1 (red and green areas). Hence, the wave in question may be the final segment of the price pattern of the trend impulse.

In our case, the price projections m also overlap(-2) and m0, so we’ll add to the structural list «:L3». The added designation is also confirmed by, that the level of the starting point m1 (horizontal pink line on the chart) achieved over the period, less than or equal to the time of its formation (red and green areas), m3 inferior in length to m2, m2, in turn, or wave group m2–m4, reaches or crosses the level of the starting point of the wave m(-3) during, no more than 50% the time interval for the formation of a group of waves m(-3)–m1, and the waves m0 and m(-2) overlap. So m1 can be the final segment of the terminal impulse.