medium · Elliott Wave Theory fibonacci
An equity index has completed Wave 1 through Wave 3. Wave 4 is currently developing. The following confluence factors are noted: 38.2% retracement of Wave 3 at 4,061, sub-wave iv of 3 range at 4,020-4,100, and a channel target at 4,080.
If the index reaches 4,075 and produces a five-wave sub-motive rally, what is the best interpretation?
- Wave 4 must still reach the exact 38.2% retracement level near 4,061 to be complete.
- The rally is actually an X-wave connector, so a second corrective leg of similar degree is coming.
- The count is invalid because the index never actually reached the sub-wave iv low of 4,020 before this rally began.
- Wave 4 is complete because multiple confluence factors were satisfied and a new impulse has begun.
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