easy · Elliott Wave Theory
A market rallies from 100 to 130. It then drops from 130 to 105. It then rallies from 105 to 190.
Why is the rally from 105 to 190 most likely Wave 3?
- It consists of three sub-waves, not a five-wave impulsive structure.
- It simply broke above the high set by the first rally from 100 up to 130.
- The prior pullback down to 105 unfolded as an unusually deep, sharp zigzag.
- It is significantly longer and likely steeper than the first rally.
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