Impulse
Truncation
When Wave 5 fails to exceed the end of Wave 3. Truncations occur after an extremely powerful Wave 3. The Wave 5 subdivides into five waves but falls short of making a new high (or low). This signals exceptional weakness.
EXAMPLE
After a massive Wave 3 rally of $50, Wave 5 only manages $2 beyond Wave 3, barely making a new high before a major reversal.