hard · Elliott Wave Theory
A market decline from 800 to 700 is labeled Wave W. It is followed by a rally to 740 with a clear three-wave internal structure.
If an analyst labels this rally as an 'X-wave', what is the most likely structural expectation for the next move?
- A second corrective pattern (Wave Y) will begin, likely dropping below 700.
- The rally will accelerate into a new impulse trend toward 900.
- The market will enter a long-term sideways consolidation between 700 and 740.
- Wave W will be re-labeled as a Wave 1 impulse due to the shallow retracement.
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?