medium · Elliott Wave Theory motive

A five-wave impulse in an equity index is suspected of ending with a truncated fifth wave. Wave 3 peaked at 3200. Wave 4 corrected to 2800. Wave 5 consists of five sub-waves but ends at 3150.

To measure the 38.2% retracement target for the ensuing correction, from which price level must the calculation begin?

  1. 3150
  2. 2800
  3. The midpoint of 3150 and 3200
  4. 3200

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