medium · Elliott Wave Theory
A technical analyst sees a five-wave decline in a commodity and wants to enter a long position for a corrective bounce.
Where should they place their protective stop to manage risk based on the impulse origin?
- Below the low of Wave 5.
- At the peak of Wave 4 of the decline.
- At the 50.0% retracement level of the decline.
- Just above the origin of the five-wave decline.
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