medium · Elliott Wave Theory alternation

A stock analyst observes three price pullbacks. The first is 10 points over 4 days. The second is 12 points over 5 days. The third is 35 points over 25 days.

Based on the 'Proportionality Guideline', what should the analyst suspect about the third pullback?

  1. It is a truncated fifth wave beginning.
  2. It is likely a correction of a higher degree, and the wave labels must be revised.
  3. It is a classic zigzag that confirms the trend.
  4. It is the Wave 4 completion of the current minor impulse.

Sign up free to see the explanation and track your rank →

More Elliott Wave Theory alternation practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 92,240+ practice questions, 30,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials