medium · Elliott Wave Theory alternation
A cryptocurrency market is in a powerful bull trend. Wave 2 was a deep 85% retracement zigzag. Wave 3 is an extreme extension (4.236 times Wave 1).
What is the most likely Fibonacci depth for Wave 4 based on the Guideline of Depth?
- 0.0%, since impulses always have two corrective waves.
- 23.6%, because the powerful Wave 3 leaves strong momentum.
- 61.8%, providing a deep retest into the Wave 3 extension zone.
- 78.6%, matching the retracement depth already carved by Wave 2.
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