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Impulse Wave Pattern

What is 'Impulse Wave Pattern'

A term used in the Elliott wave theory to describe the strong move in a stock's price coinciding with the main direction of the underlying trend. These impulse waves are shown in the illustration below as wave 1, wave 3 and wave 5. Impulse waves also refer to the strong downward movements in a downtrend.

Explaining 'Impulse Wave Pattern'

The interesting thing about the Elliott wave theory is that it is not limited to a certain time period. This allows some waves to last for several hours, several years or even decades. Regardless of the time frame used, impulse waves always run in the same direction as the primary trend.


Further Reading


Using wave theory to maximize retail investor media communications
www.tandfonline.com [PDF]
… Wave theory reflects sentiment of both institutional and retail investors at different points in the impulse and corrective waves … TABLE 1. Survival of Retail Investor Wave as a Function of Media Coverage. Status, Coverage, Uncensored, Censored, Totals, % Censored …

The Elliott's Wave Theory: Is it True During the Financial Crisis?The Elliott's Wave Theory: Is it True During the Financial Crisis?
papers.ssrn.com [PDF]
… Wave theory reflects sentiment of both institutional and retail investors at different points in the impulse and corrective waves … TABLE 1. Survival of Retail Investor Wave as a Function of Media Coverage. Status, Coverage, Uncensored, Censored, Totals, % Censored …

Small-sample confidence intervals for impulse response functionsSmall-sample confidence intervals for impulse response functions
www.mitpressjournals.org [PDF]
… Wave theory reflects sentiment of both institutional and retail investors at different points in the impulse and corrective waves … TABLE 1. Survival of Retail Investor Wave as a Function of Media Coverage. Status, Coverage, Uncensored, Censored, Totals, % Censored …

Unconscious herding behavior as the psychological basis of financial market trends and patternsUnconscious herding behavior as the psychological basis of financial market trends and patterns
www.tandfonline.com [PDF]
… Wave theory reflects sentiment of both institutional and retail investors at different points in the impulse and corrective waves … TABLE 1. Survival of Retail Investor Wave as a Function of Media Coverage. Status, Coverage, Uncensored, Censored, Totals, % Censored …

The financial/economic dichotomy in social behavioral dynamics: the socionomic perspectiveThe financial/economic dichotomy in social behavioral dynamics: the socionomic perspective
www.tandfonline.com [PDF]
… Wave theory reflects sentiment of both institutional and retail investors at different points in the impulse and corrective waves … TABLE 1. Survival of Retail Investor Wave as a Function of Media Coverage. Status, Coverage, Uncensored, Censored, Totals, % Censored …


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