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Elliott Wave Cheat Sheet

COMPLETE REFERENCE

Motive · Corrective · Fibonacci · Trade Setups

Based on Elliott Waves Made Simple & Nature's Law · Last updated April 2026

What is Elliott Wave Theory?

The market has only two phases that repeat on every timeframe and every instrument:

1Motive Phase

5 waves (1-2-3-4-5) moving WITH the larger trend. Waves 1, 3, 5 are impulse moves. Waves 2, 4 are pullbacks.

2Corrective Phase

3 waves (A-B-C) moving AGAINST the larger trend. Follows every completed 5-wave motive phase.

FRACTAL NATURE

A 5-wave move on the 5min chart is one wave inside a larger 5-wave move on the 15min chart, and so on up through every timeframe.

THE CYCLE

After 5 waves complete → expect A-B-C correction. After A-B-C completes → new motive cycle begins. This repeats infinitely.

3 Universal Rules (can NEVER be violated)

1

Wave 2 never retraces beyond the start of Wave 1.

2

Wave 3 is never the shortest of Waves 1, 3, and 5. (Can be shorter than one, but never shorter than BOTH.)

3

Wave 4 cannot enter Wave 1's price territory. (Exception: diagonal patterns allow overlap.)

Pattern Quick Map

MOTIVE PHASE
  • • Impulsive (5-3-5-3-5)
  • • Extended (9 waves)
  • • Leading Diagonal
  • • Ending Diagonal
CORRECTIVE PHASE
  • • Zig-Zag (5-3-5)
  • • Flat (3-3-5)
  • • Triangle (3-3-3-3-3)
  • • Double/Triple Three
→
KEY INSIGHT

Elliott waves are fractal — each motive wave contains a smaller 5-wave pattern, and each corrective wave contains a smaller 3-wave pattern, repeating infinitely across all timeframes.

Motive Phase

4 patterns, all with 5-wave structure moving with the larger trend

5-3-5-3-5

Impulsive Wave

012345ABC

The standard, most common motive pattern. W1/3/5 each contain 5 sub-waves (motive). W2/4 each contain 3 sub-waves (corrective).

RULES

• W2 never retraces beyond the start of W1

• W3 is often the longest — never the shortest of W1, W3, W5

• W4 cannot enter W1 territory

TIP

Aim at going with W5 after you see strong, sharp movements (W3 in many cases), but make sure all three rules are in place first.

9 WAVES

Extended Wave

0123 (ext)459 waves total

One of the motive waves (1, 3, or 5) extends further into its own 5-wave pattern, giving 9 waves total instead of 5.

RULES

• Same 3 universal rules as Impulsive waves

• One of W1/3/5 extends into its own 5-wave structure

• Only ONE wave can be extended — never two or all three

• W3 has the highest probability of being the extended wave

• Each leg still has correct sub-wave count on smaller timeframes

TIP

Strong spikes following news/fundamental events are where you can expect extended waves. The strongest volatility occurs after important fundamental events.

5-3-5-3-5

Leading Diagonal

012345W4 enters W1Only in W1 or A

A 5-wave pattern where W4 enters W2's territory (unlike standard impulse). Forms a wedge-like shape. Signals an early-stage trend change.

RULES

• W2 never retraces beyond the start of W1

• W3 is often the longest — never the shortest of W1, W3, W5

• W4 enters W2 territory but must hold beyond the END of W2

• Appears ONLY in Wave 1 or Wave A position — never anywhere else

TIP

After a Leading Diagonal, a deeper-than-normal pullback is expected. Since LD appears only in W1 or A, expect this in the opposite direction of the old trend.

3-3-3-3-3

Ending Diagonal

012345W4 enters W2Only in W5 or C · Wedge shapeSub-waves: 3-3-3-3-3

A 5-wave wedge where ALL 5 legs have 3 sub-waves each (not 5!). Signals exhaustion. After the wedge/trendline breaks, expect a strong reversal.

RULES

• W2 never retraces beyond the start of W1

• W3 is often the longest — never the shortest of W1, W3, W5

• W4 can enter W2 territory but must hold beyond the END of W2

• ALL 5 legs have 3 sub-waves each — not 5

• Appears ONLY in Wave 5 or Wave C — never anywhere else

TIP

The easiest way to spot an Ending Diagonal on a blank chart is to look for a Wedge Pattern. Wedges appear at the ending stages of the trend.

Corrective Phase

3-wave moves against the primary trend, labeled A-B-C. Two groups: Simple and Complex.

Zig-Zag

5-3-5
StartABC5-3-5 · C ≈ A in size

Waves A and C are both motive (5 sub-waves each, usually impulsive). Wave B is corrective (3 sub-waves — can be a smaller zig-zag or triangle).

RULES

• Wave B must end before start of Wave A

• Wave C must break beyond end of Wave A

• Wave C ≈ Wave A in size (key differentiator from 1-2-3: in motive 1-2-3, Wave 3 is usually the longest)

• Found in Waves 2, 4, and B

Important: Wave 2 can NEVER be a triangle. If you see a triangle-like structure in what you think is Wave B, and the prior move was a 5-wave A, then it must be a Zig-Zag B.

Flat Correction

3-3-5
ABCB ≥ 90% of A3-3-5 · B ≥ 90% of A

Waves A and B are both corrective (3 sub-waves each). Wave C is the only motive pattern (5 sub-waves). Key rule: Wave B must retrace at least 90% of Wave A (78.6% minimum allowed in Forex).

VARIANTS

Regular

B retraces ≥90% of A but does NOT exceed start of A. C must end beyond end of A.

Expanding

B EXCEEDS start of A (ideally 123.6%–161.8% inverse of A). C must end beyond end of A.

Running

B exceeds start of A. C does NOT exceed end of A. Very rare — only label if nothing else fits.

Focus on Regular and Expanding Flats — Running Flats are extremely rare with current market volatility.

Triangle

3-3-3-3-3A-B-C-D-E
ABCDE3-3-3-3-3 · Only in W4, B, X

ONLY in Wave 4, Wave B, or Wave X. Never in Wave 2. After triangle breaks → sharp, strong movement in trend direction.

VARIANTS

Contracting

Each leg smaller than previous (A biggest). B<A, C<B, D<C, E<D.

Barrier

Same as contracting but B & D end at similar levels (horizontal support/resistance).

Running

B ends beyond start of A. Legs still contract. Often caused by short-term fundamental spike.

Expanding

Each leg LARGER than previous (A smallest). B>A, C>B, D>C, E>D.

Double & Triple Three

COMPLEX
WXY7 swings · W-X-Y (3-3-3)

Double Three (W-X-Y)

• 3-3-3 — each of W, X, Y is corrective

• W = ZZ or Flat · X = ZZ/Flat/Triangle · Y = ZZ/Flat/Triangle

• X must end before start of W

• Y must end beyond end of W

• Common in W4 if W2 was a simple correction

Triple Three (W-X-Y-X₂-Z)

• 3-3-3-3-3 — five corrective waves

• W = ZZ/Flat · X = ZZ/Flat/Tri · Y = ZZ/Flat

• X₂ = ZZ/Flat/Tri · Z = ZZ/Flat/Tri

• Very rare — label only when nothing else fits

Warning: Never try to force complex corrections within other complex corrections — you'll get lost.

TIP

7-Swing Shortcut

Count Higher Highs & Higher Lows (or LH/LL in downtrend). If you get 7 alternating swings against the trend → Double Three. Breakdown: W covers swings 1-3, X covers swing 4, Y covers swings 5-7. Trade in trend direction after the 7th swing.

Fibonacci Levels

Retracement = end of pullbacks (W2/4/B/X) · Extension = end of trending waves (W3/5/C)

KEY FIBONACCI NUMBERS
23.6%38.2%50%61.8%78.6%100%123.6%161.8%200%
HOW TO DRAW

Fibonacci Retracement: Used to find potential ends of corrective waves (2, 4, B, X). Draw from start→end of the previous trending wave. Example: to find end of W2, draw fibs from start→end of W1.

Fibonacci Extension: Used to find potential ends of trending waves (3, 5, C). Draw from start→end of the previous trending wave, then project from the pullback. Example: to find end of W3, draw from start→end of W1, then project from end of W2.

Motive Wave Levels

Wave 250%–61.8% of W1 (min 38.2%)Retracement: draw start→end of W1
Wave 3161.8%–200% of W1 (min 100%)Extension: draw W1, project from W2 end
Wave 423.6%–38.2% of W3Retracement: draw start→end of W3
Wave 5100%–161.8% inverse of W4Extension: draw W4, project inverse

Corrective Wave Levels

Zig-Zag B50%–61.8% of A
Zig-Zag C100%–123.6% of A
Flat B (Reg)78.6%–90% of A
Flat B (Exp)123.6%–161.8% inv of A
Flat C (Reg)100%–123.6% of A
Flat C (Exp)161.8% of B target
Triangle C61.8% of A
Triangle D61.8% of B
Triangle E61.8% of C
Complex X50%–61.8% of W
Complex Y100%–123.6% of W
Complex X₂50%–61.8% of Y
Complex Z100%–123.6% of Y

Trade Setups

CONSERVATIVE STYLE

Max 10 trades/mo · 1H/4H/Daily · Min R/R 1:3 · Max risk 2% (<$10K) or 1% (>$10K) · MUST trade with larger trend · Best waves: W3, W5, Wave C (Zig-Zag)

CONSERVATIVE

Wave 3 (Impulse)

Pre-trade: Larger trend confirmed on 4H/Daily. W1 has 5 valid sub-waves. Optional: RSI divergence between sub-waves 3 & 5 of W1.

ENTRY

Pending at 50% Fib retracement of W1

STOP

Starting point of W1 (if hit → setup invalid)

TARGET

100% & 161.8% ext of W1 from W2 end

Move SL to break-even at 100% target. If W3 already has 5 sub-waves at T1, close entire trade.

CONSERVATIVE

Wave 5 (Impulse)

Pre-trade: Larger trend confirmed. W3 has 5 valid sub-waves. W3 tested 161.8% ext of W1. Optional: RSI divergence.

ENTRY

38.2% retracement of W3 (23.6% if W3 extended)

STOP

50% retracement of W3

TARGET

Inverse 161.8% of W4

Move SL to break-even when price breaks beyond W3's end.

CONSERVATIVE

Wave C (Zig-Zag)

Pre-trade: Larger trend confirmed. Wave A has 5 valid sub-waves. Optional: RSI divergence between sub-waves 3 & 5 of A.

ENTRY

50% retracement of Wave A

STOP

Starting point of Wave A

TARGET

100% extension of A from B's end

Move SL to break-even when price breaks beyond A's end.

AGGRESSIVE STYLE

2-3 trades/day · 15min/30min · Min R/R 1:2 · Max risk 3-4% (<$10K) or 2% (>$10K) · Can trade against trend (max 50% of trades) · Best waves: W3, W5, Wave C

AGGRESSIVE

Wave 3 (Impulse)

Pre-trade: W1 has 5 valid sub-waves. Optional: RSI divergence.

ENTRY

TWO orders: 50% & 61.8% retrace of W1

STOP

Starting point of W1 (both orders)

TARGET

100% & 161.8% ext of W1 from W2 end

Move SL to break-even at 100% target. If 5 sub-waves in W3 at T1, close entirely.

AGGRESSIVE

Wave 5 (Impulse)

Pre-trade: W3 has 5 valid sub-waves and tested 161.8% ext of W1. Optional: RSI divergence.

ENTRY

TWO orders: 23.6% & 38.2% retrace of W3

STOP

50% retracement of W3 (both orders)

TARGET

Inverse 123.6% & 161.8% of W4

Move SL to break-even when price breaks beyond W3's end.

AGGRESSIVE

Wave C (Zig-Zag)

Pre-trade: Complete 5-wave motive phase before correction. Wave A has 5 valid sub-waves. Optional: RSI divergence.

ENTRY

TWO orders: 50% & 61.8% retrace of Wave A

STOP

Starting point of Wave A (both orders)

TARGET

100% extension of A from B's end

Move SL to break-even when price breaks beyond A's end.

PRE-TRADE CHECKLIST
[ ] Larger TF trend confirmed (4H/Daily)
[ ] Previous wave has correct 5 sub-waves
[ ] All 3 rules validated for wave count
[ ] RSI divergence visible between W3 & W5 (optional)
[ ] R/R ratio meets minimum (1:3 cons / 1:2 agg)

Methods & Tips

01

High/Low Method

10-15 SEC PER CHART
1Find significant turning points on a plain chart
2Ask: 'Motive or Corrective?'
3Sharp/strong = Motive · Choppy/overlap = Corrective
4If Motive → label 1-2-3-4-5
5If Corrective → determine which pattern
6Cross-check ALL rules
7Enter only when rules match

If unsure after 10-15 seconds → skip to the next chart. Never force a count.

02

Chart Pattern Mapping

Head & Shoulders

Maps to: End of Motive → Correction

End of Correction → Impulse

5 waves to head → 1st · 3 waves → 2nd

Double Top

Maps to: Flat correction

Left=W5, pull=A, right=B, drop=C

Cross-check 5 waves from bottom to first top

Wedge

Maps to: Ending Diagonal

1st: end of W5 · 2nd: end of Wave C

5 waves to head → 1st · 3 waves → 2nd

Triangle

Maps to: 1st: end of W4

2nd: end of Wave B

3 waves to triangle → W4 · 5 waves before → Wave B

03

RSI Divergence

CONFIRMATION ONLY
IF

Price new high/low

BUT

RSI doesn't follow

THEN

→ W5 exhaustion confirmed

IF

Extended wave

BUT

Divergence from W3-of-3

THEN

→ through end of W5

Best results: combine all 3 methods (High/Low + Patterns + RSI) for maximum confirmation.

PATTERN LOCATION RULES
Leading DiagonalONLY in W1 or Wave A
Ending DiagonalONLY in W5 or Wave C
TriangleONLY in W4, Wave B, or Wave X
Zig-ZagWaves 2, 4, and B
FlatWaves 2, 4, and B
Complex (Dbl/Tri)Often W4 when W2 was simple
Wave 2Can NEVER be a Triangle
SUB-WAVE INTERNAL STRUCTURE
Impulsive:5-3-5-3-5
Extended:5-3-(5-3-5-3-5)-3-5
Leading Diag:5-3-5-3-5
Ending Diag:3-3-3-3-3
Zig-Zag:5-3-5
Flat:3-3-5
Triangle:3-3-3-3-3
Double Three:3-3-3 (W-X-Y)
Triple Three:3-3-3-3-3 (W-X-Y-X₂-Z)
GOLDEN RULES OF THUMB
WAVE BEHAVIOR
  • 1 W3 is usually the strongest & longest wave
  • 2 After W5 → always expect A-B-C correction
  • 3 W2 can NEVER be a triangle
  • 4 Alternation: deep W2 (ZZ) → shallow W4 & vice versa
  • 5 Extended waves triggered by high-volatility events
PATTERN ID
  • 6 After Leading Diagonal → deeper-than-normal pullback
  • 7 After Ending Diagonal breaks → sharp, violent reversal
  • 8 Flat B retraces ≥90% of A (78.6% in Forex)
  • 9 Running Flat: extremely rare — label only if nothing fits
  • 10 Double Three = 7 alternating swings against trend
DISCIPLINE
  • 11 Combine all 3 methods for best results
  • 12 Never force complex corrections within complex
  • 13 Conservative: ALWAYS trade with larger trend
  • 14 Unsure? Move to the next chart — never force
  • 15 Max decision time: 10-15 sec. Not obvious → skip