medium · Elliott Wave Theory
A bullish impulse sequence is observed with the following price points: P₀ = 50, P₁ = 72, P₂ = 58, P₃ = 95, P₄ = 78, and P₅ = 88.
Which of the following statements accurately classifies the structure?
- The structure is a leading diagonal due to the shallow nature of Wave 5.
- The structure is an invalid impulse because Wave 5 failed to exceed the peak of Wave 3.
- The structure is a valid impulse featuring a fifth-wave truncation.
- The structure is invalid because Wave 5 is the shortest motive wave.
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