Online Training on

Advanced Elliott wave- Neo wave Analysis

And
Hurst’s Time Cycles

Trainer: Ashish Kyal, CMT, Author

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Essential rules for an Impulse:

1. Internally comprise of 5 segments or waves, structured as 5-3-5-3-5.

2. Three waves thrust in impulse direction (1st ,3rd& 5th ).

3. 2nd& 4th waves correct the 1st& 3rd waves, respectively.

4. 3rd cannot be “the” shortest of the 1st , 3rd& 5th waves.

5. 4th wave should not enter the area covered by 2nd (except in terminal impulse) – Rule of
overlap

6. 2nd& 4th wave should alternate in price, time, severity, intricacy, construction- Rule of
Alternation .

7. No part of 1st or 3rd should break the 0-2 line- Neely’s Confirmation Rule .

8. No part of 3rd or 5th should break the 2-4 line (except in terminal impulse)

9. Internal & external Fibonacci relationships are usually present among the segments.

10. Only one among the 1st, 3rd or 5th waves can extent – Extension rule.

11. The extended wave should be at least 1.618 of the next longest wave – Extension rule.

12. 12. The two unextended waves tend towards equality – Rule of Equality.

13. 13. 5th failure possible, especially when 3rd is already an extended wave.

14. 14. Only 4 (out of possible 6 ) touch-points should touch the two opposing trendlines –
Neely’s Touch point Rule.

15. 15. 2-4 line should be cut in lesser or equal time period compared to 5 th – Neely’s Rule of
Confirmation.

Corrective “3”

There are only 4 basic types of standard correctives.

1. Zigzag (structured as 5-3-5)

2. Flat (structured as 3-3-5)

3. Triangle (structured as 3-3-3-3-3)

4. Diametric (structured as 3-3-3-3-3-3-3)

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Essential construction rules for ZIGZAG

 Internally comprises of 3 segments or waves, structured as 5-3-5.

 B should be less than 61.8% of A.

 C should move beyond the end of A

 C usually relates to A price-wise, or to the total of A+B, time-wise, usually be equality or

Fibonacci ratio.

 B could be even 1% of A

 0-B line should be broken in equal or lesser time period than that of C- Neely’s Rule of
Confirmation.

 Only 3 (out of possible 4) touch points should touch the parallel trend lines – Neely’s Touch
Point rule.

 If C ends on the parallel channel, then development of complex corrective involving “x” wave,
is possible.

Essential construction rules for FLAT

 Internally comprises of 3 segments or waves, structured as 3-3-5.

 B should be more than 61.8% of A.

 C usually relates to A price-wise, or to the total of A+B, time-wise, usually be equality or

Fibonacci ratio.

 0-B line should be broken in equal or lesser time period than that of C- Neely’s Rule of
Confirmation.

 Only 3 (out of possible 4) touch points should touch the parallel trend lines – Neely’s Touch
Point rule.

 If C ends on the parallel channel, then development of complex corrective involving with “x”
wave, is possible.

Essential construction rules for TRIANGLE

 Internally comprises of 5 segments or waves, structured as 3-3-3-3-3.

 Each segment is complete corrective.

 Triangle can drift upward or downward.

 A does not have to be the largest.

 E must be the smallest.

 Only 4 (out of possible 6) touch points should touch the two opposing trend lines- Neely’s
Touch Point Rule.

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  At least 3 segments correct more than 50% of the previous.

 B-D is the base line and the same should be clean.

 On the other side, draw A-C line when C is shorter than B.

 Draw C-E line on the other side when C is bigger than B

 Triangle is over when B-D line gets broken in equal or lesser time period than that of E-
Neely’s Rule of Confirmation.

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