medium · Elliott Wave Theory

In a bearish impulse (a five-wave decline), Wave 2 is a sharp zigzag rally. Wave 4 develops as a sideways expanded flat rally.

If Wave 1 ended at 150 and Wave 3 ended at 80, what is the upper price limit for the Wave 4 rally?

  1. 200.00, the origin of the bear trend.
  2. 115.00, the 50% retracement level.
  3. 149.99, to avoid overlapping the low of Wave 1.
  4. 80.01, to stay within the territory of Wave 3.

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