# NeoWave Wave Theory by Glenn Neely. Description of the fourth rule for the ratio of wavelengths and the conditions for its implementation c, d and e.

10 min readContinuing consideration of the fourth rollback rule. The first two conditions a and b were considered in the last lesson, and now it’s the turn of conditions c, d and e.

Just in case, let me remind you, that the fourth rule is confirmed, if the wave m2 moves in the opposite direction with respect to m1 and reaches from 61,8% up to 100% (not including) its length.

If this rule is met, then we further measure the ratio of waves m0 to m1, choose one of the suitable conditions a, b, c, d, e and the corresponding category for a specific condition i, ii, iii. All conditions and the categories corresponding to them were described in the previous article and in this, below. In accordance with the confirmed rule, by condition and category we assign the corresponding structural notation to the waves. Then we calculate the ratio of m3 to m2 and determine, What category does the market situation under study belong to?.

## Rule 4 (conditions c, d and e)

### Condition (c). m0 from 100% up to 161,8% (not including) m1.

If condition c is satisfied in the vicinity of the wave m1, we select the appropriate category and add one or more notation «:c3/(:F3)/(x:c3)».

### Category i. m3 from 100% up to 161,8% (not including) m2.

In this situation, do not make any specific assumptions. More detailed information can be obtained in the process of studying the interaction of m1 with nearby waves, what we will talk about in the next lessons. Therefore, while at the end point of the wave m1 write the notation «:F3/:c3».

### Category ii. m3 from 161,8% up to 261,8% (inclusive) m2.

If the initial level m2 (plus one unit of time) achieved over the period, not exceeding the period of formation of this wave, and the m3 price range is over 161,8% length m1, there is a high probability, that m1 is the central segment of a plane with a failed c or a central wave of a tapering triangle. In the vicinity of the end of m1, the notation «:c3/(:F3)».

Wherein:

- If the less likely designation is true, «:F3», then m1 will be part of an elongated flat.
- In other cases, at the end of the wave, m1 adds a notation group «:F3/:c3/x:c3».

### Category iii. m3 over 261,8% m2.

If the initial level m2 (plus one unit of time) achieved over the period, not exceeding the period of formation of m2, with high probability we can assume, that m1 is a central complete plane with a failed c or a central wave of a non-bounding tapering triangle. So, in the vicinity of its end, the notation «:c3/[:F3]».

Worth noting, what’s the option with «[:F3]» only possible if, when the amplitude of m4 exceeds 61,8% length m3. Moreover, the price movement above this mark should occur over a period of time, not exceeding the duration of the formation of m3.

In all three categories, if during formation m2 crosses the final level m1, then before «:c3» should be added «x».

First, we’ll choose a rule that suits the given market situation, condition and category. Wave m2 moves in the opposite direction with respect to m1 and reaches from 61,8% up to 100% (not including) its length. The chart above shows, that this condition is met, which means that the requirements of rule 4 are working.

The chart above shows, that the price length m0 from 100% up to 161,8% m1. Condition criteria are met (c).

Further, in the chart above we see, that the amplitude of m3 is from 161,8% up to 261,8% wavelength m2. So in our case there is category ii of the condition (c) rules 4.

According to her, in the vicinity of the wave m1 we add the notation: «:F3/:c3/x:c3».

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

If condition d is met in the vicinity of the wave m1, we choose the appropriate category and add one or more notation «:F3/(:c3) /(x:c3)».

### Categories i and ii. m3 from 100% up to 261,8% (inclusive) m2.

1. If the initial level m2 (plus one unit of time) achieved over time, not exceeding the duration of the formation of this wave, and the price length m3 is more than 161,8% length m1 and length m4 less than or equal to 61,8% amplitudes m3, there is a high probability, that m1 may be part of a complex correction, whose x-wave «gone» in the middle of the wave m0. In the vicinity of the end of m1, the notation «:F3/:[c3]» and in the center m0 – draw a circle, write to his left «:c5?», on right – «x:c3?», and at the end point of the wave m0 – «F3?».

2. If the initial level m2 (plus one unit of time) achieved over the period, exceeding the duration of its formation, with high probability we can assume, that m1 is part of a plane or triangle. At the endpoint m1, the notation «:F3/:c3». If during formation m2 crosses the final level m1, then before «:c3» should be added «x».

3. If the initial level m2 (plus one unit of time) achieved over time, not exceeding the duration of the formation of this wave, then the only likely designation will be «:F3».

4. If the length of m4 is at least 61,8% m3, but does not reach 100% length m3, then an acceptable likely designation would also be, as in the past, «:F3».

5. If the price amplitude m4 is less than 61,8% m3, then the endpoint of the wave m1 should be denoted «:F3».

Wherein, if the longest wave of a group of waves, consisting of m1, m3 and m5 is m1 or m3 and the level of the starting point of the wave is m5 (plus one unit of time) achieved over a period of time, less than or equal to the duration of development m5, then m1, probably, is part of the terminal price figure.

If m5 is longer than m1 and m3, then m1 can be part of the price figure of a complex double flat. X-wave of this figure, respectively, will be m4. In both latter cases, in the vicinity of the end point m1, the notation «:F3».

### Category iii. m3 over 261,8% m2.

1. If the duration of m3 does not exceed the duration of the formation of m1, and the initial level m2 (plus one unit of time), achieved over the period, not exceeding duration m2, there is a high probability of having «invisible» or «missing» x-waves in the center of the wave m0. So, at the endpoint m1, we should put the notation «:c3».

If the price amplitude m4 is less than 61,8% m3, then the endpoint of the wave m1 should be denoted «:F3».

2. If the formation period m3 exceeds the duration m1, then at the endpoint m1 we should write the notation «:F3/:c3»

In both cases, if the wave m2 crosses the final level m1 during its formation, before designation «:c3» need to add «x».

The chart above shows, how the m2 wave falls in the range from 61,8% up to 100% projection wavelengths m1. Rule 4 requirements are met.

Having defined the rule, we are looking, which of the conditions of this rule suits us. In the chart above we see, that the price length m0 is a little less than 261,8% from the projection of length. Condition criterion is met (d).

Next, we determine the category. Since the amplitude of m3 is from 100% up to 261,8% wavelength m2. Means, in our case there are categories I and ii conditions (d) rules 4.

Since the initial level m2 (plus one unit of time) achieved over the period, exceeding the duration of its formation, with high probability we can assume, that m1 is part of a plane or triangle, which corresponds to the second paragraph of the category. Hence, the endpoint m1 should be denoted «:F3/:c3».

### Condition (e). m0 over 261,8% m1.

When the condition is met (e) in the vicinity of the wave m1, select the appropriate category and add one or more notation «:F3/(x:c3)/[ :c3]».

### Categories i and ii. m3 from 100% up to 261,8% (inclusive) m2.

1. If the initial level is m3 (plus one unit of time) achieved over the period, not exceeding the period of formation of this wave, the only option in this situation would be «:F3». Therefore, we will write this notation in the vicinity of the end point of the wave m1.

2. If the amplitude m3 is less than or equal to 161,8% wave amplitudes m2, and also m4 is inferior in length to the wave m3 and the level of the starting point m4 is reached over a period of time, inferior to the formation time of m4, then m1 may be the x-wave of complex correction. In this case, it is worth putting the notation at the endpoint m1 «x:c3». Moreover, in this scenario, the length m(-1) may exceed 61,8% price amplitude m0. If so, then in the center of the wave m0 can be located «invisible» x-wave.

3. If the initial level m2 (plus one unit of time) achieved over the period, not exceeding the period of formation of m2, price extent m(-1) is no more than 61,8% amplitudes m0, length m4 less than or equal to 61,8% length m3, and the length is m3 (either groups, consisting of waves from m3 to m5) reaches a value greater than or equal to the length m1, for a time not exceeding the period of wave formation m1, then m1 can be either part of a complex correction, whose x-wave, probably, located in the region of the center of the wave m0, either m1 is an x-wave, next after the zigzag. In this case, we need to place the notation in the neighborhood of the endpoint m1 «:F3/[:c3]». And in the center of m0 – draw a circle, write to his left «:s5», and right – «x:c3?». If the wave m2 crosses the final level m1 during its formation, before designation «:c3» need to add «x».

4. If the initial level m2 (plus one unit of time) achieved over the period, exceeding m2 formation period, price extent m(-1) is no more than 61,8% amplitudes m0, length m4 less than or equal to 161,8% length m3, and the length is m3 (either groups, consisting of waves from m3 to m5) reaches a value greater than or equal to the length m1, for a time not exceeding the period of wave formation m1, then m1 can be either part of a complex correction, whose x-wave, probably, located in the region of the center of the wave m0, either m1 is an x-wave, next after the zigzag. In this case, we need to place the notation in the neighborhood of the endpoint m1 «:F3/[:c3]». And in the center of m0 – draw a circle, write to his left «:s5», and right – «x:c3?». If the wave m2 crosses the final level m1 during its formation, before designation «:c3» need to add «x».

5. If the initial level m2 (plus one unit of time) achieved over the period, exceeding the period of its formation, then, probably, it’s about forming a triangle or a flat. Therefore, the endpoint m1 should be marked «:F3».

6. If m0 is a composite wave or monowave, in the center of which, most likely «gone» x-wave, then m1 may be the x-wave of complex correction. So, the designation should be added to the structural list m1 «x:c3».

7. If the length m(-1) does not exceed 61,8% price extent m0, then m1 may be the x-wave of complex correction. Respectively, to the structural list m1 you need to add the notation «x:c3».

### Category iii. m3 over 261,8% m2.

If the wave formation period m3 is less than or equal to the formation period m1 and the level of the starting point m2 (plus one unit of time) intersects in time, not exceeding the duration of formation m2, then, most likely, this is about «missing» x-waves in the center m0. So, at the end point m1, the notation «x:c3». If the wave group, consisting of waves from m3 to m5, does not reach the level of the initial point m0 and the length m4 is at least 61,8% price amplitude m3, it is very likely, that m1 represents the initial segment of an elongated flat. Hence, at the endpoint m1 you need to put the notation «:F3».

### Consider the condition (e) rule 4 by example.

First we confirm rule 4. The graph shows, that the wave m2 moves in the opposite direction with respect to m1 and reaches from 61,8% up to 100% its length. Rule 4 requirements are met.

Define a condition for a rule. The chart above shows, that the price length m0 is slightly more than 261,8% projection wave m1. Condition criteria are met (e).

Next, we define the condition categories (e). From the graph above follows, that the amplitude of m3 is from 100% up to 261,8% wavelength m2. Therefore, in our case, categories I and ii hold (e) rules 4.

Since the initial level m2 (plus one unit of time) achieved over the period, exceeding m2 formation period, price extent m(-1) is no more than 61,8% amplitudes m0, length m4 less than or equal to 161,8% length m3, and the length is m3 (either groups, consisting of waves from m3 to m5) reaches a value greater than or equal to the length m1, for a time not exceeding the period of wave formation m1, then m1 can be either part of a complex correction, whose x-wave, probably, located in the region of the center of the wave m0, either m1 is an x-wave, next after the zigzag. In this case, we need to place the notation in the neighborhood of the endpoint m1 «:F3/[:c3]». And in the center of m0 – draw a circle, write to his left «:s5», and right – «x:c3?».