medium · Elliott Wave Theory
An ending diagonal is identified completing Wave 5 of a large-scale bull trend.
What is the characteristic price action that follows the completion of the diagonal's Wave 5?
- A 'thrust' that continues the trend for a distance equal to Wave 1
- A sideways consolidation that holds above the Wave 4 low
- A swift reversal that retraces the entire diagonal back to its origin
- A slow, overlapping decline that forms a new leading diagonal
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