medium · Elliott Wave Theory complex

In a W-X-Y double combination, the X-wave rallies and retraces 75% of the preceding W zigzag.

What does this deep retracement suggest about the nature of the overall correction?

  1. A new impulse wave has begun and the correction is over
  2. The analyst has made a degree error and should move to a monthly chart
  3. The correction is a 'Sideways Combination' intended to consume time
  4. The correction is a 'Double Zigzag' intended to produce significant depth

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