medium · Elliott Wave Theory
A corrective structure is labeled as a 'Double Zigzag' (W-X-Y). Wave W is a zigzag with a range of 600 points.
If the connecting X-wave rallies 525 points, what does this deep retracement imply about the following Y pattern?
- The structure will most likely terminate as a Regular Flat instead.
- The deep X-wave rally instead signifies the start of a new, larger impulse trend.
- The Y wave will likely produce a deep, sharp continuation of the correction.
- The correction is instead shifting entirely into a shallow, sideways combination structure.
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?