OptiNod Academy
Neowave
Browse all 16 parts in the Neowave series and start from the section you need.
Monowaves — A wave ends when direction changes
In Neely's method a monowave ends every time price changes direction. We compare monowaves with zigzag-filter lines on real BTC data.
Wave charts — A candle does not show the order of its high and low
Glenn Neely's wave chart plots highs and lows in the order they occurred. Using BTC data, we check how a close line, bar order, the day boundary and the time frame change the monowave count.
Retracement Rules — Using ratios to narrow the prior wave to :5 or :3
Neely's Retracement Rules 1–7 use the m2/m1 and m0/m1 ratios to narrow down the possible structures of the wave that just ended.
Structure labels — Finding where a pattern starts and ends from its :5 and :3 sequence
Before numbering waves 1, 2, A or B, write :5 and :3 candidates for each wave and let the label sequence show where a pattern starts and ends. With BTC examples.
The Rule of Similarity and Balance and degree — Timeframes do not decide degree
Two adjacent waves stay same-degree candidates only when one is at least 1/3 of the other in price or time, and a pattern that passes every rule is compacted into a single :5 or :3 that moves up into the larger structure.
Impulse rules — A long wave 3 does not make an impulse
A Neely impulse has to pass the essential rules, the 161.8% extension, the wave-4 overlap rule, alternation and the wave-2 and wave-4 time rule. We test each one on four BTC stretches.
Terminal impulse — The last wave whose five segments are all 3s
A wedge shape alone doesn't make a terminal. Using real BTC and ETH data, we check the substructure, the position and how fast price retraces once it ends.
Post-pattern confirmation — The time it looked finished differs from the time it was confirmed
Neely's post-pattern confirmation uses price and time conditions that differ by pattern. Record the end-candidate time and the confirmation time separately, and recalculate the entry at the confirmation time.
Flats — the correction isn't over just because wave B tops the start of wave A
Neely sorts flats into variations by their B/A and C/B ratios. We measure each variation's wave-C limits and time conditions on real BTC and ETH data.
Zigzags — sort the variation by wave C's length and anticipate the next move
Neely splits zigzags into normal, truncated and elongated by wave B's depth and wave C's length. We check, on real BTC and ETH data, the move that must follow a short C.
Triangles — where the triangle sits decides the size of the breakout
Neely's triangles split into contracting and expanding, with three variations, and in a wave-B or wave-4 position the thrust's upper limit is about 161.8%. We measure size and time on six BTC, ETH and SOL sections.
Complex corrections and X waves — a correction can continue after one ABC ends
The move against an ABC isn't automatically a new trend. Judge it by the 2020 X-wave limits (time, monowave count, 161.8%) and by the structure of the next correction.
Channels — judge the structure by which wave crosses the line
Neely's 0-2 and 2-4 lines aren't support and resistance. Using three BTC sections, we show how the wave that crosses a line tells you where waves 2 and 4 ended and which wave extended.
Missing waves — keep them as an alternate count only when there's evidence
Neely's missing waves are monowaves that a larger time frame erases. We test the conditions for accepting one, and the clues to emulation, on real BTC data.
Diametric and symmetrical — judge seven- and nine-leg ranges by time symmetry
After the book, Neely set out conditions for diametrics, symmetricals and neutral triangles in his official Q&A. We test them against the leg sizes and times of four BTC sections.
Power Ratings — Turning a pattern name into an expected size for the next move
Neely gave each corrective pattern a rating from -3 to +3 and set a retracement limit for the next wave. We test moves that broke those expectations on real BTC and ETH data and recheck the counts.