Constructing nested Elliott wave counts with ratio clusters

Lock the active wave degree

The construction catalog treats market movement as nine named degrees that nest into larger copies of the same five-with-trend and three-against-trend forms. Identifying the active wave degree is treated as a prerequisite for any price projection, because the same action-reaction geometry repeats from primary through minor while only the labels change.

Wave degree names the scale of the pattern being labeled, from the largest multi-generation cycles down to the smallest intraday fragments.

Nest the same skeleton at every scale

An intermediate construction is assembled as a five-wave motive wave followed by a three-wave corrective wave. The motive wave itself is built from three with-trend legs and two countertrend pauses. A motive wave is a five-leg move that travels with the trend of its own degree, including a downward impulse inside a larger decline.

Inside a corrective wave, the A and C legs are constructed as five-wave motive waves in the countertrend direction, and the B leg is constructed as a three-wave pause. A corrective wave is a three-leg pause that travels against the trend of its own degree and is treated as an expected retracement rather than a new impulse.

A subwave is a complete pattern of one lesser degree nested inside a parent wave, so the same five-three geometry repeats at every scale.

Read the next turning zone from a projection cluster

Forward price construction uses Fibonacci retracements and ratios in a fixed sequence. The second wave retraces the first. The third combines ratios of the first two. The fourth mixes a third-wave retracement with ratios of the first three. The fifth combines ratios of all prior legs.

The preferred terminal estimate is formed by computing every admissible retracement and ratio and reading the tightest projection cluster rather than a single isolated multiple. A projection cluster is the set of Fibonacci ratio and retracement estimates computed from all completed legs; the tightest grouping is read as the preferred terminal zone.

Discard labels that break inviolate count rules

Three counting constraints are treated as inviolate count rules. The third wave cannot be shorter than both the first and the fifth. The second wave cannot move beyond the origin of the first. The fourth wave cannot enter the first wave's price range.

If a supposed fourth wave enters the first wave's price range, the construction is revised so the assumed third and fourth legs become the first two subwaves of an unfinished third wave.

Treat chart scale as part of the construction

Chart scale is part of the construction. End-of-day bars are treated as sufficient for minor degree and higher, while five-minute bars are used when minute or minuette detail must be resolved.