Applied Elliott Wave

Home Study Program

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LEADING DIAGONAL

A slight variation of the Impulse is seen when the price movement is slow to develop.

This pattern is commonly seen when markets are changing trend, especially from down to up.

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While there are 5 waves in this pattern, and like the Impulse,
3 waves 1, 3 and 5 are motive waves, waves 4 and wave 1

1 overlap sharing a common price territory. This overlap is

accomplished by a shorter wave 3. Wave 1 in the Leading
Diagonal is the longest wave.
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RISING LEADING DIAGONAL

2 2

In a Leading Diagonal, trend lines connecting the end points 4

of Wave 1-3 and wave 2-4 NEED to converge towards each
other. The other guidelines of Leading Diagonals will be
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explained later on.

While it is said Falling Leading Diagonals are not generally

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FALLING LEADING DIAGONAL
seen, I would remain open to such a possibility as markets
are always in a state of flux.
 ENDING DIAGONAL

T he third and last type of motive wave is the Ending Diagonal. This too is made up of 5

waves, like the other two motive waves.

5 Like the Leading Diagonal, the Ending Diagonal also has an

3 overlap between wave 1 and wave 4. This is achieved once again

1 by a longer wave 1 and with wave 5 shorter than wave 3. Similar

to the Leading Diagonal, the trend lines joining the end points of
wave 1-3 and wave 2-4 must converge.
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However there exists a major difference between the Leading
Diagonal and the Ending Diagonal. All the waves making up the
2 Ending Diagonal are three wave structures. Thus the Ending
Diagonal is already taking shape of patterns to come ahead.

RISING ENDING DIAGONAL

While Leading Diagonals appear at beginning of new trend, Ending

Diagonals appear when the trend is getting ready to change. 2
These three are the only motive patterns occurring in markets.
Please go back and review the motive wave patterns once again, 4
before we move ahead to understand the corrective patterns. A
thorough knowledge of the patterns will go along way in 1
understanding the markets.
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DECLINING ENDING DIAGONAL