Alternation
(Elliott Wave) Alternation is one of Elliott's observations. He noticed that it was common that if Wave 2 in an impulsive wave is short and fast, then Wave 4 is sideways (flat) and slow.
Alternation within Impulse Waves
Sharp corrections are zigzags. Sideway corrections consist of flat corrections, triangles, double, and multiple corrections.
Rule of Alternation
When complex basing occurs early in a dynamic uptrend, alternation predicts major price thrusts with few retracements. This CMGI parabolic move supports that theory.
The alternations of trend are a direct function of volatility - so we can say that the X-axis is scaled in units of risk - since volatility is often thought of as a proxy for risk. The Y-axis is scaled in units of relative return.
Ideal Alternation Pattern
13.5. Using Elliott Waves in the Forex Trading ...
Congestion by Alternation: A series of four consecutive alternating open high - close low, open low - close high bars in any sequence. This definition includes Congestion by High/Low pairs.
Forex Brokers ...
4H: We have been anticipating the current rally as wave 4, which according to the law of alternation in Elliott Wave principles, should be of a different form than the "abcde" zig-zag of wave 2.
This wave should not cross the 1.
Rule of Alternation : Wave 2 and 4 should unfold in two different wave forms.
Wave forms in Impulse Wave
There are three major types of wave form in Impulse Wave:
(a) Extended Wave ...
1) We watch the action of the market (concentrating on the short-term price-chart) for signs of significant changes in momentum and volatility.
1a) as evidenced by the alternation between "Impulsive" and "drifting" price-action: ...
Wave 3 should not be the shortest wave among Wave 1, 3 and 5;
Wave 4 should not overlap with Wave 1, except for wave 1, 5, a or c of a higher degree.
Rule of Alternation: Wave 2 and 4 should unfold in two different wave forms.
 See also: Long, Trend, Trading, Short, Chart
  
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