medium · Elliott Wave Theory
A converging wedge finishes a fifth wave. The internal waves are all zigzags. The reversal from the peak is slow, choppy, and only retraces 30% of the wedge range in half the time of formation.
What is the most likely diagnostic conclusion?
- The market has entered a Running Flat at the terminal peak
- The reversal speed is normal for a logarithmic market
- The 'retrace-to-origin' rule only works in equity markets
- The diagonal pattern is likely incomplete and Wave 5 is still unfolding
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