Motive Wave Variants · Lesson 2 of 6

The Ending Diagonal.

The ending diagonal is the mirror image of the leading diagonal: same wedge-shaped 5-wave structure, but appearing at the END of a trend rather than the start. It signals imminent reversal. Five overlapping waves in a converging wedge, 3-3-3-3-3 sub-structure, often with a throw-over of the upper trendline as a final false breakout. After completion: a sharp reversal back to or beyond the start of the ED, frequently retracing the entire pattern in a fraction of the time it took to form.

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Figure II
The wedge at the end of a trend
Wave Personality
Wave 1
The First Move
Skeptical

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Rule violated: Wave 4 cannot enter Wave 1's territory
Price Time Upper line (1-3) Lower line (2-4) Contracting wedge: upper line through W1-W3 tops, lower line through W2-W4 lows. Both lines converge to the right. W1-top W4-low W4-W1 overlap (when it happens) The W4-W1 overlap helps confirm a diagonal when it appears, but is NOT required. Many real-world LDs have no overlap. W5 throw-over Throw-over: W5 commonly pierces slightly above the upper trendline, then reverses sharply. Ending diagonals appear at the END of trends: as Wave 5 of an impulse (larger or smaller degree) or as Wave C of a zigzag. Start of ED (first target) Start of larger trend (full retrace) Sharp reversal Post-ED: the reversal often retraces the ENTIRE ED back to its start, frequently extending all the way back to where the larger trend began. a b c a b c a b c a b c a b c prior rally 1 2 3 4 5
Step 1 of 8

The Pattern Begins

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