Waves within waves

Elliot theorized that the wave above was a small wave, embedded within an overall larger wave, and that each larger wave was in turn simply part of an even larger wave. This can be difficult to imagine, but if we look at the example below, we can see exactly what he meant

We can see that Waves 1 through 5, and Waves A through C - as shown in the first chart - form part of an overall impulse Wave 3, as shown in the second chart above.