Lesson 4 - Part B
Added 2023-11-04 19:28:50 +0000 UTC- Leading Diagonal (LD)
What is a Leading Diagonal Wave?
A leading diagonal is a special type of Elliott wave pattern that occurs at the beginning of a new trend. It is a motive wave that is characterized by five sub-waves, labeled 1, 2, 3, 4, and 5, but it does not follow the traditional Elliott wave rules.
Characteristics of Leading Diagonals
Leading diagonals have the following characteristics:
- They typically occur at the beginning of a new trend.
- They are motive waves, meaning that they move in the direction of the overall trend.
- They have five sub-waves, labeled 1, 2, 3, 4, and 5.
The main point of a Leading Diagonal Wave is that they start at the beginning of a structure and waves can overlap each other, as shown above.
Usually Wave 4 can not infringe on Wave 2 territory, but in a Leading Diagonal Wave, this is allowed. This ONLY happens in Wave 1 or Wave A.
Leading Diagonal Wave Rules:
- Rule # 1 - Wave 2 never falls below the starting point of Wave 1.
- Rule # 2 - Wave 3 is often the longest wave, but never the shortest of the waves 1-3, and 5. Wave 3 can be shorter than wave 1 or wave 5, but can't be shorter than both.
- Rule # 3 - Wave 4 must hold above the start of Wave 2.
