medium · Elliott Wave Theory complex
In a triple three combination (W-X-Y-X-Z), the market spends 18 months correcting. Wave W is a zigzag from 4,500 to 4,100. Wave Y is an expanded flat from 4,350 to 4,050. Wave Z is a contracting triangle.
What is the primary purpose of this specific structure according to Wave Theory?
- To provide a sharp, 'scary' retest of the Wave 1 origin.
- To correct in time rather than price depth.
- To achieve a 61.8% retracement of the prior Supercycle wave.
- To reset momentum oscillators to oversold extremes before a trend reversal.
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