medium · Elliott Wave Theory
An analyst observes a price bar in a downtrend that is longer than any bar in the preceding multi-month rally.
According to the 'Longest-Bar Test', what does this indicate about the market trend?
- The market belongs to a higher 'Degree' than previously thought.
- A 'Running Flat' is forming.
- The prior uptrend is likely damaged or complete.
- The market is entering a Wave 3 extension.
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