Impulse
Wave 2
QUICK DEFINITION
Wave 2 in Elliott Wave Theory: The first corrective wave in an impulse sequence. Wave 2 retraces a portion of Wave 1 but never retraces beyond its starting point. Common retracements are 50%-61.8% of Wave 1. Wave 2 corrections tend to be sharp (zigzags).
What Wave 2 Means
The first corrective wave in an impulse sequence. Wave 2 retraces a portion of Wave 1 but never retraces beyond its starting point. Common retracements are 50%-61.8% of Wave 1. Wave 2 corrections tend to be sharp (zigzags).
Where You'll See It
Wave 2 appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the impulse family of Elliott Wave concepts and shows up most often when analysts are labelling the 5-wave impulse structure that drives the larger trend.
LEARN MORE
- → 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