medium · Elliott Wave Theory
A stock rallies from $10 to $20, then pulls back to $15. It then rallies to $50.
If the analyst is using the Box Method to project the final target, what is the next step after drawing a box from $15 to $50?
- Multiply the $35 height by 0.618.
- Measure the retracement from $50 back to $10.
- Stack an identical box on top of the 50 level.
- Draw a parallel channel through the peak of Wave 1.
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?