What is wave equality in Elliott Wave?

Wave equality is the guideline that when Wave 3 is the extended wave (the longest of Waves 1, 3, 5), Waves 1 and 5 tend toward equality in length and duration. It's used to project Wave 5 targets — if Wave 1 ran $10, Wave 5 often projects a similar $10 move from the Wave 4 low.

Wave equality is one of Elliott Wave's most widely-used Fibonacci-derived guidelines. It applies specifically when Wave 3 is the extended wave (the longest of the three impulse waves), which is the most common scenario in stocks and indices. In this case, the two non-extended waves — Wave 1 and Wave 5 — tend to be approximately equal in both price distance and time duration. This gives a projectable target: measure Wave 1's amplitude, add it to the Wave 4 low (in an uptrend), and you have a probable Wave 5 termination zone. The equality guideline holds in roughly 60-70% of impulses where Wave 3 is the extended wave. The alternative outcome is a 'truncated' Wave 5 that falls short of equality, or an extended Wave 5 that runs 1.618× Wave 1 — both less common but valid.

• → 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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