Methodology
How Eightwaves counts waves
The rules every count is checked against before it publishes.
01
Wave 2 never retraces beyond the start of wave 1
If it does, the impulse count is void and the alternate scenario takes over.
02
Wave 3 is never the shortest
Among waves 1, 3 and 5, wave 3 cannot be the shortest.
03
Wave 4 does not enter wave 1's price territory
Except in diagonals, which are labelled as such.
04
Every analysis has one invalidation level
It doubles as the stop loss and defines a −1R result.
05
The alternate scenario has an explicit trigger
Written as a price and timeframe condition, such as an H1 close below a level.
06
Levels lock at publish
Any change goes through a public, timestamped revision.