medium · Elliott Wave Theory
An equity index rallies from $100 to $120, retraces to $110, and then surges to $160.
If the next correction drops the price to $118 before a final rally to $180, why is this count invalid as a standard impulse?
- The total swing count of nine is inappropriate for an impulse.
- Wave 4 entered the price territory of Wave $1.
- Wave 3 is the shortest of the three motive waves.
- Wave 2 retraced more than 100% of Wave $1.
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