What it means
Elliott Wave Theory labels waves by DEGREE — distinguishing the time scale of the wave being counted. Standard degrees from largest to smallest: Grand Supercycle (centuries), Supercycle (decades), Cycle (years), Primary (months), Intermediate (weeks), Minor (days), Minute (hours), Minuette (minutes), Sub-Minuette (seconds). Each higher degree contains 5-wave impulses composed of lower-degree 5-wave impulses. Skilled Elliott practitioners always specify which degree they're discussing.
Why it matters
Degree confusion is the dominant source of wrong Elliott counts. A trader might correctly identify a Wave 3 at one degree but be wrong about whether it's a Primary Wave 3 (months-long target) or an Intermediate Wave 3 (weeks-long target). The implications for position sizing and timing differ dramatically. Correct degree identification is the prerequisite for actionable Elliott analysis.
How to use it
Always specify wave degree explicitly. Start at the highest visible timeframe (monthly/weekly) and work down. Build out larger-degree waves first; only then count smaller-degree waves within them. The 5/3 wave pattern repeats at every degree — the same chart shows 5 waves on weekly that are themselves a Wave 3 on monthly.
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