Determining Wave Degree

Reviewing numerous sources on the internet it is obvious that the labelling degrees is not an exact process.  One person's Intermediate degree can be another person's Minor degree and another's Primary degree.  It really is of little consequence, however. Wave theory depends on scale and fibbonaci percentages, both of which will be the same regardless of what degree you are labeling.

Regardless of which degree you start the labeling process with, it is very important that you label comparative moves as the same degree.  Waves are supposed to have the "right look"  in both price movement and, much more loosely, time to completion.  It is not realistic for a wave 4 which maps out 122 bars to completion to be the same degree as a wave 2 that finished in 4 bars.

We found this handy chart which explains how these folks determine degree which may be helpful.  

In our practice, when we look at a daily chart and see the smallest impulsive waves in which the swings (you can count waves 1,2,3,4,and 5 but not necessarily the internal structure of those waves) can be recognized, we start with a Minutte (Pink, Parenthesis, italic) degree label. So, the smallest clearly identifiable swings (but not necessarily the internal structure) are Minutte degree and graduate up and down from there with the time frame being viewed.  

Use the appropriate time frame to analyze the correction. If you are trying to track an ongoing Intermediate degree correction on a 15 minute time frame you will be confused, exhausted, and sadly disappointed. The difficulty is that on smaller time frames you will be tempted to label the internals of the correction in the incorrect degree. Use the proper time frames to note the swings, then look to the smaller time frames to establish the internals.

Do not rush the count. You must make sure the entire correction exhibits the "look and feel" that is expected on the proper time frame for the degree you are working with.

Did it retrace far enough? Did it take an appropriate amount of time to retrace? A W4 Flat should take at least twice as long as W2 zigzag, and perhaps up to 3-4 times as long.  Beyond that, your wave count is suspect or you should look to a complex correction analysis. Was the prior impulse wave particularly long or a 5 of 5?  If so, a complex correction is more likely.

Note that the charts below are for the wave 2 and wave 4 corrections for the given degree and not the ABC corrections following wave 5 of that degree. For the wave 5 ABC corrections, you should look to the analysis of W2 and W4 at one higher degree.

Subminuette (Blue small case italic waves ii and iv)

Micro circle red a, b, c

Minuette (Pink, parentheses small case Italic waves II and Iv)

Minute (Green, circle small case italic waves ii and iv )

Minor (Red, waves 2 and 4)

Intermediate (Blue, parentheses wave 2 and 4)