medium · Elliott Wave Theory
At a potential market peak, the RSI hits 82 during a move to 3,500 (Wave 3). The market then makes a new high at 3,650, but the RSI only reaches 68.
What wave position does this momentum divergence help confirm?
- A 'throw-over' in a leading diagonal.
- The beginning of an extended Wave 3.
- The completion of a Wave B rally in a flat correction.
- The completion of Wave 5.
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