Rules of Motive Waves

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Motive Waves are the components of Elliot Wave structure. Motive Waves consists of 5 sub-waves of which 3 are impulse (In the direction of trend) and 2 corrective waves. The Motive Wave in the upward direction will start with Swing High, Ends with Swing High and consists of 3 Higher Highs and 2 Higher Lows representing strong upward trend. Motive Wave in the downward direction will start with Swing Low, Ends with Swing low and consists of 3 Lower Lows and 2 Lower Highs representing strong downward trend.


🎲 Types of Motive Waves
Motive Waves are broadly classified by two types:

• Impulse Waves
  
• Diagonal Waves
  

Diagonal Waves are further classified into Contracting and Expanding Diagonals. These can fall into the category of either leading diagonal and ending diagonal.

🎲 Rules of Motive Waves

🎯 Generic Rule of any motive waves are as follows

• Should consist of 5 alternating waves. (Swing High followed by Swing low and vice versa)
  
• This can start from Swing High and end in Swing High or start from Swing Low and end in Swing Low.
  
• Wave-2 should not move beyond Wave-1. This means, the Wave-2 is always shorter than Wave-1 with respect to distance between the price of start and end.
  
• Wave-3 always moves beyond Wave-1. This means, the Wave-3 is always longer than Wave-2 in terms of price
  
• Among Wave-1, Wave-3, and Wave-5, Wave-3 is never the shortest one. This means, either Wave-1 or Wave-5 can be longer than Wave-3 but not both. Wave-3 can also be longest among the three.
  

Here is the pictorial representation of the rules of the Motive Waves


For a wave to be considered as motive wave, it also needs to follow the rules of either impulse or diagonal waves.

🎯 Rules for a 5 wave pattern to be considered as Impulse Wave are:

• Wave-4 never overlaps with Wave-1 price range
  
• Wave-1, Wave-3 and Wave-5 should not be either expanding or contracting. Meaning, we cannot have Wave-1 > Wave-3 > Wave-5, and we cannot have Wave-1 < Wave-3 < Wave-5

Pictorial representation of the impulse wave rules are as below:


🎯 Rules for the Diagonal Waves are as follows

• Contrary to the first rule of impulse wave, in case of diagonal wave, Wave-4 always overlaps with Wave-1 price range.
  
• Wave-1, Wave-3 and Wave-5 are either in expanding formation or contracting formation. That means, we need to have either Wave-1 > Wave-3 > Wave-5 OR Wave-1 < Wave-3 < Wave-5

Pictorial representation of the Contracting Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in contracting formation.


Pictorial representation of the Expanding Diagonal Wave is as below. Here, the Wave-1, Wave-3 and Wave-5 are in expanding formation.