The most common pattern in Elliott Waves Theory is called an impulse, or impulsive move. An impulse it is formed out of five different waves of a smaller degree, and it has to follow some specific rules, without breaking them. Rules are rules and they should be treated with respect. Breaking of these rules, and the move you are looking at is not an impulse, so you should look for clues regarding what kind of a structure/pattern is.

In an impulse:

- first wave must be an impulse of a lower degree or a leading diagonal;
- second wave can be any corrective pattern, except a triangle;
- second wave cannot retrace more than the first wave;
- second wave must retrace the first wave by a minimum of 20%;
- maximum time for secon wave is nine times the first wave;
- third wave cannot be smaller than both fifth and first wave;
- third wave must be an impulse of its own, of a lower degree;
- third wave must be longer than first wave in distance by price;
- third wave and first wave cannot both wave fifth waves failures;
- failure= fifth wave is smaller than the fourth wave;
- third wave cannot be more than seven times first wave by price;
- fourth wave can be any corrective pattern;
- fourth wave must be bigger than one third of the previous second wave;
- third and fourth waves cannot be both failures;
- fifth wave must be an impulse or an ending diagonal;
- if fifth wave is bigger than the third wave, than it is an impulse;
- fifth wave must be higher than 70% of wave four;
- if fifth wave is a failure, than the fourth and the third waves cannot have failures;

Sounds complicated? Well, the purpose of the recordings that come with this sub chapter is to prove you the contrary. I will take some charts and look at different price structures in order to see if the rules of an impulse apply, and show you what a failure is, what to look when trying to apply these rules, and much more.