hard · Elliott Wave Theory
You are analyzing a terminal wedge-shaped pattern at a major high. Waves $1, 3, and $5 all subdivide into 3 waves each. Wave 4 clearly overlaps the price territory of Wave $1.
What is the primary implication once the lower trendline of this structure is breached?
- The move is a simple impulse that has temporarily lost momentum.
- A swift reversal to the origin of the diagonal is expected.
- The market is in a leading diagonal and will soon enter a deep Wave 2 before skyrocketing.
- A powerful thrust in the direction of the wedge is imminent.
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