hard · Elliott Wave Theory
A market rallies from $100 to $150, pulls back to $120, and then surges to $220. After a correction to $180, it advances to $240. Measuring the motive waves, Wave 1 = 50, Wave 3 = 100, and Wave 5 = 60.
Which statement best describes the validity of this impulse?
- The structure is valid because Wave 3 is the longest of the motive waves.
- The structure is invalid because Wave 2 retraced more than 50% of Wave $1.
- The structure is valid but requires a leading diagonal label due to the Wave 4 positioning.
- The structure is invalid because Wave 4 overlaps with the price territory of Wave $1.
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