medium · Elliott Wave Theory

A trader enters a short position at the end of a Wave B rally within a bear market correction.

What is the biggest psychological risk for this entry based on wave personality?

  1. A final violent Wave C rally squeezing shorts
  2. A flat consolidation that fails to retrace the advance
  3. A truncation of the Wave C decline
  4. The Wave B rally exceeding the Wave 1 origin

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