medium · Elliott Wave Theory
In a commodity market, Wave 3 extends to a 2.618 ratio of Wave 1.
If Wave 2 was a sharp zigzag retracing 61.8% in 5 days, what behavior should be expected for Wave 4 based on the Guideline of Alternation?
- A sharp zigzag retracing 50% to 61.8% within about 5 days, like Wave 2.
- A leading diagonal overlapping into Wave 1's price territory, unusual for Wave 4.
- A sideways flat or triangle retracing 23.6% to 38.2% over a longer duration.
- An expanded flat retracing about 78.6% of Wave 3's advance, an unusually deep pullback.
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