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The Guideline of Alternation

By Smart Wave Analysis Research TeamUpdated How we analyzeIntermediate

The guideline of alternation says that waves 2 and 4 of an impulse usually differ in form. If wave 2 is a sharp correction, such as a zigzag, wave 4 is likely to be sideways, such as a flat or triangle, and the reverse is also common.

What alternation means

Markets rarely repeat the same corrective pattern twice in a row within an impulse. Elliott described this tendency, and Frost and Prechter expanded it into the guideline of alternation. It is a guideline, not a rule, but it is one of the most reliable tools for forecasting wave 4.

Alternation diagram with a sharp zigzag wave 2 and a sideways flat wave 4
If wave 2 is a sharp zigzag, expect wave 4 to be a flat or triangle.

How waves 2 and 4 alternate

  • Shape: a sharp zigzag in wave 2 often leads to a sideways flat or triangle in wave 4.
  • Depth: wave 2 often retraces deeply, while wave 4 is often shallow.
  • Time: one correction is often quick and the other slower.
  • Complexity: one may be simple and the other complex, such as a double three.

Alternation in larger patterns

Alternation also appears in corrections. In a double three, the W and Y patterns usually differ. In a flat, a sharp wave A is often followed by a more complex wave B.

Alternation diagram with a flat wave 2 and a sharp zigzag wave 4
A shallow, sideways wave 2 often leads to a sharper wave 4.

How to use it

  • After a sharp, deep wave 2, prepare for a slow, sideways wave 4. Avoid expecting a quick bounce.
  • After a shallow, sideways wave 2, expect a sharper wave 4.
  • Combine alternation with Fibonacci: a shallow wave 4 often ends near the 23.6 to 38.2 percent retracement of wave 3.
Alternation diagram comparing a deep quick wave 2 with a shallow slow wave 4
Wave 2 is often deep and fast. Wave 4 is often shallow and slow.

Frequently asked questions

What is the guideline of alternation?

The tendency for waves 2 and 4 to differ in shape, depth, time or complexity.

Is alternation a rule?

No. It is a guideline that describes what usually happens, not what must happen.

If wave 2 is a zigzag, what is wave 4 likely to be?

A sideways pattern such as a flat or triangle.

Sources and further reading

Educational content only. Nothing on this page is financial advice or a recommendation to buy or sell. Trading involves risk and you can lose money. Elliott Wave counts are probabilities, not certainties. Read our full disclaimer and affiliate disclosure.