hard · Elliott Wave Theory
During a bull market rally, price makes a new high in Wave 5, but the volume is significantly lower than it was during Wave 3. Additionally, the RSI peak in Wave 5 is lower than the RSI peak in Wave 3.
What do these signals suggest?
- The market has entered a Running Flat correction.
- Wave 5 is extending and will likely reach a 2.618 target.
- The count is invalid because Wave 5 must have the highest volume.
- The 5-wave impulse is likely complete, and a reversal or significant correction is imminent.
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