This method of technical analysis is used mainly by professional traders, because there are many nuances of using this analytical tool. For example, rarely, but still, truncation in trading occurs https://fbs.com/analytics/guidebooks/what-does-truncation-mean-259 In contrast to an extended impulse wave, a truncated impulse wave has a fifth wave in its composition, which not only smaller in amplitude than the third, but does not leave the zone of the 3rd wave. This is a possible signal of movement against the trend.