medium · Elliott Wave Theory
An analyst is choosing between Count A (the high is Wave 3) and Count B (the high is Wave 5). The current price new high is accompanied by volume that is 35% lower than the volume at the previous major high.
Which count is favored?
- Lower volume simply makes this impulse look cleaner on the chart itself.
- Volume readings carry no real diagnostic weight at all in equity index wave counting.
- Count B is favored because volume should peak during Wave 3 and decline during Wave 5.
- Count A is favored since volume spikes are typical of major breakout points in any trending market.
Sign up free to see the explanation and track your rank →
More Elliott Wave Theory practice
- In a five-wave advance, Wave 1 is 10 points long, Wave 3 is… — How should this count be co
- A commodity price moves from $80 to $96, pullbacks to $88, t… — If an analyst identifies t
- Which is more likely?
- According to the Swing Count Validation technique, what should the trader conclude?
- Based on common Fibonacci relationships, how far might Wave C drop from the end of Wave B?
- An analyst sees a 'Close-Below-Prior-Swing Test' fire when p… — What does this likely sign
- According to the 'Fourth-Wave Target Zone' guideline, where is a correction most likely to
- According to the Guideline of Alternation, what should you expect for Wave 4?