Wave Degrees & Fractals
Overview
Elliott Waves are fractal — the same five-wave impulse and three-wave corrective patterns appear at every scale, from monthly charts down to tick charts. Wave degrees label these nested patterns: Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, Minuette, Sub-Minuette. Understanding multi-degree analysis allows traders to see how smaller waves fit into larger structures.
Key Concepts
Nine wave degrees: Grand Supercycle (centuries) → Sub-Minuette (minutes). Each impulse wave contains five smaller waves. Each corrective wave contains three smaller waves. Wave 1 of a larger Wave 3 contains its own 5-wave sub-structure. Multi-timeframe analysis: higher degree provides trend direction, lower degree provides entries.
Entry Signals
Identify the larger-degree wave count for trend bias, Enter on smaller-degree wave completions within the larger-degree trend, Wave 3 of Wave 3 (multiple degrees aligning) = strongest move, Trade only when multiple wave degrees agree on direction
Exit Signals
Exit when the higher-degree wave count projects completion, Trail using the smaller-degree wave structure, Multi-degree divergence = exit signal
Best Timeframes
Grand Supercycle: Monthly. Cycle: Weekly. Primary: Daily. Intermediate: 4H. Minor: 1H. Minute: 15M.
Pro Tips
The fractal nature of waves means you're always in multiple timeframe positions simultaneously. Don't lose the forest for the trees — a perfect 15M setup is meaningless if it's fighting the Daily wave count.
More Topics in This Category
Corrective Waves (A-B-C)
After a five-wave impulse, the market enters a three-wave correction labeled A-B-C. Corrective waves move against the larger trend and take many forms: zigzags (sharp A-B-C), flats (sideways A-B-C), and triangles (contracting A-B-C-D-E). Corrections are always three-wave structures (or combinations of threes). Identifying correction completion signals the next impulse wave entry.
Fibonacci Retracements & Extensions
Fibonacci ratios are central to Elliott Wave — they define where waves are likely to end and project targets for the next wave. Key retracement levels (0.382, 0.5, 0.618, 0.786) identify where pullback waves (2, 4, B) are likely to end. Extension levels (1.272, 1.618, 2.618) project where motive waves (3, 5, C) are likely to reach.
Impulse Waves (1-5)
The impulse wave pattern consists of five waves in the direction of the larger trend: three motive waves (1, 3, 5) separated by two corrective waves (2, 4). This is the core structure of Elliott Wave Theory. Wave 3 is typically the longest and most powerful, never the shortest. Wave rules: Wave 2 cannot retrace beyond the start of Wave 1. Wave 4 cannot overlap with Wave 1 territory (except in diagonals).
Leading & Ending Diagonals
Diagonals are wedge-shaped Elliott Wave patterns that occur in specific positions within the wave structure. Leading diagonals appear in wave one or wave A positions and signal the beginning of a new trend. Ending diagonals appear in wave five or wave C positions and signal trend exhaustion. Both types feature overlapping sub-waves contained within converging trendlines.