Friday, November 9, 2012

Neo Wave: Advanced Elliott wave concepts

Neo Wave: Advanced Elliott wave concepts

By Waves Strategy Advisors (
Neo wave by Glen Neely is an advanced part of Elliott wave. In a simple Elliott wave there are only 3 basic rules:
1.       Wave 3 cannot be the shortest of wave 1, 3 and 5
2.       Wave 4 cannot overlap with any part of wave 1
3.       Wave 2 cannot retrace 100% of wave 1
However by using above rules for impulsive structure there is couple of probable scenarios always running. Neo wave has many rules to define a simple impulse pattern which are very rare. This tends to reduce the subjectivity and provide objectively the most probable scenario that can occur. Following are a few important rules that Neo wave gives
“Rules for Impulsive Waves”
1.       An impulse wave consists of 5 waves with wave 1, 3 and 5 traveling in direction of the impulse and wave 2 and wave 4 correcting the preceding wave
2.       Wave 3 cannot be the shortest of wave 1,3 and 5
3.       No part of wave 3 can break the 0 – 2 line
4.       No point of wave 5 can break the 2-4 line
5.       Touch point rule: Out of 6 points in impulsive wave not more than 4 points should lie on the channel.
6.       Rule of Equality: The rule of equality states that two unextended waves should tend towards equality in price / time.
7.       Overlap rule: No part of wave 4 can fall into the price range covered by wave 2
8.       Extension Rule: The longest wave should be atleast 1.618 times the next longest wave in terms of price.
9.       Rule of Alternation: Wave 2 and wave 4 should alternate in as much ways as possible – Price, Time, Severity, Intricacy, Construction
There is more to it. Learn systematic way of trading and trade only high probable setups by applying Advanced technical concepts. Write to us on for more information or visit


  1. " No part of wave 3 can break the 0 – 3 line ", IS THIS CORRECT OR 0-2 LINE SHOULD BE THERE?

  2. It should be 0-2 line.. Thanks for the correction

  3. can u explain with figures n charts , exactly how we should see a neo wave .

  4. Hi Dikshita, It is a very indepth concept and it is difficult to explain it here. We will be conducting a training on Neo wave probably in February and you can attend that in Mumbai. For more details you can visit