What is Impulse wave?

An impulse (motive) wave typically subdivides into five waves in the direction of the larger trend. Common rules: wave 2 does not retrace beyond the start of wave 1; wave 3 is never the shortest; wave 4 does not overlap wave 1 in a standard impulse.

Traders often hunt wave 3 or wave 5 continuations after a clear wave 2 or wave 4 correction. Stops are frequently placed beyond the invalidation of those rules.

If a PipAlert Signal is framed as an impulse entry, ask whether the stop matches the wave invalidation—not an arbitrary pip count.