hard · Elliott Wave Theory
A trader identifies a sideways combination (W-X-Y) where wave W is a zigzag. Wave X rallies from 50 to 65 (after a 40-point decline in W). Wave Y is a flat.
If the move from 50 to 65 contains three sub-waves, but sub-wave C is a diagonal triangle, is the X-wave label valid?
- Yes, but only if the diagonal is a leading diagonal, as ending diagonals are forbidden in connectors.
- No, diagonal triangles are motive waves and cannot appear in any part of a corrective X-wave.
- Yes, an X-wave can end in a diagonal triangle because wave C of any corrective pattern can be an ending diagonal.
- No, if the X-wave contains a diagonal, it must be a double zigzag, not a double three.
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