Example:
If you identify a 5-wave impulse (Polywave Type I), and wave 3 is 61.8% of wave 1 in price but 200% in time, Neely’s rules would flag it as unlikely—forcing re-labeling.
Neely expanded this rule significantly. It applies not just to price, but to time and complexity. mastering elliott wave by glenn neelypdf top
Most traders use Fibonacci ratios to hope a wave is done. Neely uses Fibonacci to validate. Example: If you identify a 5-wave impulse (Polywave
In the search for the "mastering elliott wave by glenn neelypdf top" resource, you will find a complex table known as the "Proportion Limits." Neely does not say, "Wave 3 should be 1.618 x Wave 1." He says: Neely expanded this rule significantly
This "checklist" approach turns wave counting from an art into a science.
Most traders look for a leading diagonal at the start of a trend. Neely flips this: If you see a 5-wave move that looks lazy (overlapping and slow), it is likely a Terminal Impulse or a correction. Neely teaches you to trade the speed of the wave, not just the shape.
If you are reading the PDF or studying the book, do not just read it—work through it.