| W1 | Impulse Start | Bullish | New uptrend launching off a completed correction — best risk/reward entry; accumulate on dips |
| W2 | Pullback | Caution | Normal retrace of W1 — not a reversal; hold longs, watch for W3 entry near key support |
| W3 | Impulse Core | Strongly Bullish | Longest and strongest wave with momentum breakouts — highest-conviction long phase; RSI >70 |
| W4 | Consolidation | Neutral | Healthy correction after W3 — sideways to down; hold positions or reduce, wait for W5 setup |
| W5 | Impulse Terminal | Weakly Bullish | Final push to new highs with weakening RSI divergence — trim positions, set trailing stops |
| A | Corrective Start | Bearish | First corrective leg off bull market highs — downside pressure begins; reduce long exposure |
| B | Counter-Trend Rally | Caution — Trap | Deceptive bounce within a correction that traps buyers — avoid chasing; C-wave decline follows |
| C | Corrective End | Bearish / Bottoming | Sharp final sell-off completing the correction — watch for RSI exhaustion before re-entry |