medium · Elliott Wave Theory

An analyst identifies a 5-wave pattern where Wave 4 overlaps the price territory of Wave 1. Every internal sub-wave (1, 2, 3, 4, and 5) is found to be a 3-wave structure.

Where is this pattern most likely located?

  1. Wave 4 correction inside a larger cycle-degree impulse
  2. Wave 3 of an extended, trending impulse
  3. Wave 5 of an impulse or Wave C of a correction
  4. Wave 1 of an impulse or Wave A of a zigzag

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