Motive Wave Variants · Lesson 4 of 6

Truncation. The Failed Fifth.

Truncation is the failed fifth wave. A complete five-wave impulse that ends with W5 unable to exceed the high of W3 - despite W5 still subdividing properly into its own five sub-waves. All other impulse rules hold: W3 is not the shortest, W4 does not overlap W1. Truncation signals exhaustion: the trend has run out of fuel before it could register a new high. The reversal that follows tends to be sharp and rapid - the failure itself is the warning.

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Figure IV
When Wave 5 falls short of Wave 3
Wave Personality
Wave 1
The First Move
Skeptical

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Rule violated: Wave 4 cannot enter Wave 1's territory
Price Time W3-top reference W5 fell short - TRUNCATED Truncation: W5 completes 5 sub-waves but ends below the W3-top reference. The trend has lost momentum. 1 2 3 4 5 W5 ~ 220 (EXTENDED) W5 extension: W5 becomes the longest wave. W1 and W3 are similar, modest length. Common in commodities and late-stage moves. 1 2 3 4 5 W1 ~ 245 (EXTENDED) W1 extension (RARE): W1 is the longest wave. Typical in parabolic late-cycle moves at the absolute end of a larger cycle. When truncation appears: typically at the end of large bull runs (W5 of a high degree), after extended W3s, or in weak markets where momentum has exhausted. (i) (ii) (iii) (iv) (v) 1 2 3 4 5
Step 1 of 8

The Pattern Begins

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