medium · Elliott Wave Theory
How does a third-wave extension affect the utility of the initial base channel constructed from Waves 1 and 2?
- It typically results in a breakout of the upper base channel line
- It causes a Wave 4 underthrow of the baseline
- It ensures Wave 5 will stay within that base channel
- It prevents an overthrow from occurring in Wave 5
Sign up free to see the explanation and track your rank →
More Elliott Wave Theory practice
- In a five-wave advance, Wave 1 is 10 points long, Wave 3 is… — How should this count be co
- A commodity price moves from $80 to $96, pullbacks to $88, t… — If an analyst identifies t
- Which is more likely?
- According to the Swing Count Validation technique, what should the trader conclude?
- Based on common Fibonacci relationships, how far might Wave C drop from the end of Wave B?
- An analyst sees a 'Close-Below-Prior-Swing Test' fire when p… — What does this likely sign
- According to the 'Fourth-Wave Target Zone' guideline, where is a correction most likely to
- According to the Guideline of Alternation, what should you expect for Wave 4?