medium · Elliott Wave Theory
In a commodity bull market, you count 9 swings up to 110. Wave 1 = 15 points, Wave 3 = 35 points, and Wave 5 = 65 points.
Why is Wave 5 allowed to be the longest, and what does this signify?
- It is a fifth-wave extension; common in commodities due to speculative blow-offs.
- It is a Leading Diagonal; this wedge structure suggests a new trend is just beginning.
- It is a rule violation, since Wave 3 can never be the shortest impulse wave.
- It is a truncation, showing that buying pressure has been exhausted.
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