A diagonal is a relatively rare motive wave pattern. It consists of five waves and, in accordance with the rules of the standard notation of wave analysis, it is labeled with numbers 1, 2, 3, 4, 5.
For identification on the chart (in order not to be confused with an Impulse), diagonals are framed by forming lines. The first (upper) framing line is drawn at the end of waves 1 and 3, and the second (lower) framing line is drawn at the end of wave 2 and the end of wave 4.
There are 4 rules for a Diagonal:
- Corrective wave 2 never goes beyond the beginning of wave 1 (or in other words: wave 2 always ends in the price territory of wave 1).
- The end of wave 3 always goes beyond the end of wave 1.
- Wave 4 always ends in the price territory of wave 2.
- Subsequent both motive and corrective waves are always smaller than the previous waves: wave 3 is smaller than wave 1, wave 5 is smaller than wave 3, wave 4 is smaller than wave 2: wave 1 > wave 3 > wave 5 and wave 2 > wave 4.
Leading and ending diagonal waves in Elliott Wave Theory are Motive Patterns. They replace impulse waves at a specific location in the wave structure.
Leading Diagonals occurs in:
– waves 1 of impulse
– waves A of single zigzag
Leading Diagonal: 5-3-5-3-5 or 3-3-3-3-3.
Ending diagonals occurs in:
– waves 5 of impulse
– waves С of single zigzag
– waves С of flat
Ending Diagonal: 3-3-3-3-3.