medium · Elliott Wave Theory alternation

Using the fourth-wave targeting principle, if the prior sub-wave iv of 3 was $98-$104, how does the triangle completion relate to this zone?

1. The count is invalid since Wave E must terminate strictly inside the prior sub-wave iv range of $98-$104.
2. The triangle must be expanding, since $105 sits above the expected low reached by Wave E.
3. Wave E is a failure because it never traded down to touch the $98 level.
4. Wave E has slightly overshot the prior sub-wave zone, which is common in triangle completions.

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