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NEoWave™ Conference and Workshop - 1995 • Page

NEoWave™ Pattern Discoveries

• Diametric Formations

• Neutral Triangles (wave-c

longest)

• Extracting Triangles

• 3rd Extension Terminals

• 5th Failure Terminals

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Diametric Formations

I experienced my first
Diametric formation in
1991. What started out
looking like a
Contracting Triangle, A Diametric Formation
generally resembles the
stopped behaving like
one when wave-e shape of a Bow Tie. G
became larger than
wave-d. If wave-e had
moved quickly enough
and far enough, I could E
have concluded the A C
pattern as a Zigzag from
the low in 1991. But, the
problem is that wave-e
did not move quickly
enough out of the D
congestion to indicate F
anything critical had B
concluded. That is when
I started to realize that a
new wave phenomenon
was unfolding. It was
simply a process of 
elimination.

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Neutral Triangles (wave-c longest)

The is a new variation in this

well known group. It is the
missing “link” that explains
many heretofore indecipherable D
periods of pattern development.
A Neutral Triangle is the B
logical missing
delicately formation
connects the that
Impulsive world to the
Triangular world. If you
compare 1st, 3rd and 5th wave
Extensions to Triangular
patterns, there is a clear area of  E
behavior not covered by R.N. A
Elliott’s original group. That
missing pattern is the Neutral
Triangle. Just like a 3rd wave
Extension Impulse pattern, the C
middle wave (wave-c) is the
longest in a Neutral Triangle.
Their characteristics are also
extremely similar to 3rd
Extension Impulse patterns. .
Just like what you might witness in a 3rd
Extension Impulse pattern, the
“extended” c-wave of a Neutral Triangle
is usually the longest, most subdivided
and most time consuming of the three
“trending” waves (i.e., waves-a, b, c).

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Extracting Triangles

This type of Triangle follows

all the rules and variations of  C
those previously listed. The
unique aspect of this
Triangular sub-category is that
the alternation
present that is (based
in a Triangle normally
on A E
which wave is the longest) is
reversed. This creates a VERY
strange looking formation that
can be very difficult to
anticipate (at least if your
experience is primarily in the
80’s bull market, which had a
completely different character). B
The only early warning
behavior characteristic I have D
been able to find relates to
wave-b. When the b-wave of 
what looks like a Zigzag takes
less time than waves-a or c, an Notice that the upwaves
Extracting Triangle is likely. (designated by up arrows)
continuously contract from
left to right - a contracting
bias - while the down arrows
show an expanding bias.

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

3rd Extension Terminals

This pattern takes on a x3

strange and difficult to
interpret structure that is
usually discovered only
1
after its conclusion (or
shortly before
conclusion if the pattern
is large enough).
This is what an 4
Extracting Triangle
looks like.
These are its
characteristics.
Here are some
examples.

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

5th Failure Terminals

Notice the conclusion point

of wave-5, it is right on the
Fibonacci level
3

Fibonacci Resistance
These patterns basically
mimic 3rd Extension Established by larger
Impulse patterns, except degree formations 5
waves-2 and 4 overlap
and the internal structure
of each move is
corrective, not 1
Impulsive.

4
2

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

NEoWave™ Behavior Discoveries

• Expanding Triangles (spike at

extremes)
• Neutral Triangles (even
distribution of behavior)

• Extracting Triangles

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

NEoWave™ Behavior Discoveries

(cont.)

• 5th Failure Terminals

(Supplemental price)

• 5th Failure Terminals (severe

alternation)

• Common
associatedBEHAVIOR mistakes
with Impulsions

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Expanding Triangles (spike at 

extremes)

Spike High
Expanding Triangles have a
strong tendency to ”spike”
when reaching the highest or Spike High
lowest pointof
termination ofeach
the wave.
This creates an identifiable
characteristic that can be
used to identify their
existence in almost any
market situation.
observation. Detection of this
behavior (price action
“spiking” near the extremes)
can help you decide what
kind of environment the
market is in even when an
exact wave count is not
obvious. Spike Low

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Neutral Triangles (even distribution of 

behavior)

D
Neutral
some of Triangles are
the calmest, B
most consistently
behaving patterns under
NEoWave™ Theory. If 
the market’s behavior
and style is not changing
much, even if the market
is covering a lot of price E
and time territory, that is
the environment of a A
Neutral Triangle.

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 Extracting Triangles

Each successive decline is smaller

in price. Each successive rally is
larger in price. This is the type of 
behavior that characterizes an
Extracting Triangle. The most
The thrust out of an important trait of this pattern
Extracting triangle is not appearsthan
larger to bewave-C
that wave-D
and isis usually
always
as violent as that
experienced by a the most complicated wave in the
Contracting Triangle, pattern from a visual standpoint.
but not as slow as that of 
an Expanding Triangle. D
Based on our previous
discussions, it should be B
obvious that the market
environment this pattern
creates is that of a
neutral bias.

A E
C

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

5th Failure Terminals (Supplemental

 price)

Fibonacci Resistance Notice the conclusion point

All Terminals (and Triangles) Established by larger of wave-5, it is right on the
experience what I call degree formations Fibonacci level
3
Supplemental
action. That is Price
whenand
the Time
market goes slightly beyond
the best calculated price and
time zones, only to reverse
and do what was originally 5
expected. Unfortunately, it is
right at the end of this pattern
that the average trader gives
up, reverses his position, only 1
to be stopped out. Shortly
thereafter, the large trend he
was predicting ends up
happening WITHOUT him.

4
2

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

5th Failure Terminals (severe

alternation)

3
This is among the
strangest and most

difficult to decipher
patterns under
NEoWave™ Theory. 5
They are difficult to be
sure of even AFTER
they have completed.
The pattern is so warped 1
by the extreme
differences in size
between waves 2 & 4
that it is frequently only
possible to identify them
well after their
conclusion. 2 4

Notice the obvious differences

between waves-2 and 4 in
price/time and complexity.
This is a critical feature of 5th
Failure Terminals.

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

Common BEHAVIOR mistakes

associated with Impulsions

Second advance Second advance too Wave-C (or 3)

takes too much violent, trend starts at has not taken 3
time in relation circled point enough time. It or
to corrective
phase should be about C
half of A+B (1+2)

1
or
A

2
or
B
Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns

38 0

37 0

36 0

35 0

34 0

33 0

32 0

31 0

30 0

29 0

1 11 21 31 41 51 61 71

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns

1 21 41 61 81 101 121 141

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns - Revealed 

Extracting Formation
38 0
Each successive decline is smaller in price. Each
successive rally is larger in price. This is the type
37 0
of behavior that characterizes an Extracting
Triangle. The most important trait of this pattern
36 0
appears to be that wave-D is always larger than
wave-C and is usually the most complicated wave
in the pattern from a visual standpoint.
35 0

34 0
D
33 0 B

32 0

31 0

E
30 0 A C

29 0

1 11 21 31 41 51 61 71

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns - Revealed 

Diametric Formation

E
A
C

D F
B

1 21 41 61 81 101 121 141

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns - Revealed 

Neutral Triangle
Wave-C is the longest wave in the
direction of the trend. Wave-d is the
longest wave against the trend is usually
the longest wave of the entire pattern.

D
Neutral Triangle B

A E
C

During this period, the trend is down

Copyright ® 1995 by Glenn Neely NEoWave, Inc., 65 Enterprise, Aliso Viejo, CA 92656 • (800) 636-9283

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NEoWave™ Conference and Workshop - 1995 • Page

 NEoWave™ Patterns - Revealed 

A C

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