medium · Elliott Wave Theory
A five-wave advance completes Wave 1. Wave 2 then retraces 61.8% of the gain. Wave 3 is a standard 1.618 extension.
If the analyst wants to project the end of the entire impulse using the 'Equality Guideline', where would they look if Wave 3 is the extended wave?
- Projecting Wave 5 to be equal in length to Wave $1.
- Setting a target where Wave 5 equals the net distance of Waves $1 through $3.
- Assuming Wave 5 will retrace to the Wave 4 low.
- Projecting Wave 5 to be 1.618 times the length of Wave $3.
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