Wave 4
Wave 4 in Elliott Wave Theory: The second corrective wave within an impulse sequence. Wave 4 never overlaps with Wave 1 price territory (strict rule). It commonly retraces 38.2% of Wave 3. Wave 4 corrections tend to be sideways (flats and triangles), alternating with Wave 2.
What Wave 4 Means
The second corrective wave within an impulse sequence. Wave 4 never overlaps with Wave 1 price territory (strict rule). It commonly retraces 38.2% of Wave 3. Wave 4 corrections tend to be sideways (flats and triangles), alternating with Wave 2.
Where You'll See It
Wave 4 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.
- → 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