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Concept

Alternation

QUICK DEFINITION

Alternation in Elliott Wave Theory: A guideline suggesting that if Wave 2 is a sharp correction, Wave 4 will likely be a sideways correction, and vice versa. This principle helps traders anticipate the type of correction to expect.

What Alternation Means

A guideline suggesting that if Wave 2 is a sharp correction, Wave 4 will likely be a sideways correction, and vice versa. This principle helps traders anticipate the type of correction to expect.

EXAMPLE

If Wave 2 was a sharp zigzag dropping 61.8%, Wave 4 might unfold as a flat or triangle.

Where You'll See It

Alternation appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the concept family of Elliott Wave concepts and shows up most often when analysts are discussing the foundational principles behind Elliott Wave Theory.

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