THE HAnDBook of TECHniCAl AnAlysisup or down, which Robert Prechter refers to as a motive wave, there will be a
reaction consisting of a three‐wave move in the opposite direction, referred to as
corrective waves. Each motive wave subdivides into three advancing waves called
impulse waves and two corrective waves. See Figure 18.1.
It should be noted that each impulse wave also subdivides into five waves at a
lower degree (labeled 1 to 5) and similarly, each corrective wave itself subdivides into
three waves at a lower degree (labeled A to C), in the opposite direction to the motive
wave. Waves 2 and 4 correct impulse waves 1, 3, and 5 whereas waves (A), (B), and
(C) correct the motive wave itself, labeled as encircled number 1. See Figure 18.2.
In general, the distance traversed by the corrective waves should not retrace
more than the distance traversed by motive or impulsive waves. This basic tendency
allows for the development of trends in the market. Motive waves are responsible
figure 18.1 Motive and Corrective Waves.
figure 18.2 Impulsive and Corrective Wave Subdivisions.