What is the rule of alternation in Elliott Wave?

The rule of alternation states that Waves 2 and 4 inside an impulse tend to differ in form: if Wave 2 is sharp (a zigzag), Wave 4 tends to be sideways (a flat or triangle), and vice versa. It's a guideline, not a rule, holding in roughly 60-70% of impulses.

Alternation is one of the most useful Elliott Wave guidelines. It captures the observation that the market rarely produces two identical corrective waves back-to-back inside the same impulse. If Wave 2 was a sharp, deep zigzag retracing 61.8% of Wave 1 quickly, Wave 4 is more likely to be a sideways flat or triangle retracing 38.2% of Wave 3 slowly. If Wave 2 was a flat or triangle, Wave 4 is more likely to be a sharp zigzag. Alternation is a guideline rather than a rule because exceptions exist — roughly 30-40% of impulses violate it. But when alternation holds, it gives strong confidence in the count. When Wave 4 looks identical to Wave 2 (both sharp or both sideways), the count is more often wrong than right and deserves a second look.

• → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
• → How to Count Elliott Waves — 6-step process used on 108 instruments
• → Elliott Wave Fibonacci Guide — the 7 core ratios and how they're applied
• → Rules and Guidelines — the 3 absolute rules + 7 guidelines

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Weekly wave counts on 108 US instruments

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