Classically, 2 cannot go beyond the origin of 1. And 4 cannot overlap with 1 - unless it is an Ending or a Leading Diagonal.
That said, I am not a believer that everything must necessarily be subject to Elliott interpretations. Remember what the whole thing is all about - it's about how the public mood, the collective emotions - drive the markets. And about certain things, the public basically doesn't care. So, such a chart will sort of ramble along, do its own quiet thing. (Maybe in such cases FA rules? - g/ng).
EW analysis works best for major - and "hot" - indices, and for popular, emotionally charged liquid individual stocks.
For commodities, Prechter and others allow some small overlaps, along the lines which you mentioned. Personally, I suspect that - in selected cases - it might be acceptable for stocks as well, but... with recognition that "softening" the rules... would probably make things (even) more risky. |
