Invalidation Level
Invalidation Level in Elliott Wave Theory: The price level at which a wave count is proven wrong. For example, if a Wave 4 count is proposed, the invalidation level is the peak of Wave 1 because Wave 4 cannot overlap Wave 1 in an impulse. Professional analysts always mark invalidation levels.
What Invalidation Level Means
The price level at which a wave count is proven wrong. For example, if a Wave 4 count is proposed, the invalidation level is the peak of Wave 1 because Wave 4 cannot overlap Wave 1 in an impulse. Professional analysts always mark invalidation levels.
A bullish Wave 3 count is invalidated if price drops below the start of Wave 1.
Where You'll See It
Invalidation Level appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the rule family of Elliott Wave concepts and shows up most often when analysts are checking whether a candidate wave count satisfies the absolute rules — a violation kills the count immediately.
- → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
- → Elliott Wave Cheat Sheet — the 3 absolute rules and 6 Fibonacci relationships
- → Our Methodology — how Artavest analysts count waves on 108 US instruments