medium · Elliott Wave Theory
A stock completes a five-wave impulse where Wave 3 is the longest. The subsequent correction targets the price range of a specific previous wave.
According to the 'Guideline of Depth', which area is the most likely target for the bottom of the correction?
- The exact origin point where Wave $1 first began.
- The peak price level reached at the top of the prior Wave $1.
- The price territory of the prior Wave 4 of one lesser degree.
- Exactly 50% retracement of the total net gain achieved during Wave $3.
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