medium · Elliott Wave Theory motive

An asset moves from an origin of 80.00 to 96.00, corrects to 88.00, rallies to 118.00, pulls back to 104.00, and finally reaches 125.00.

Which of the following statements correctly validates this sequence as a standard five-wave impulse?

  1. The sequence is invalid because Wave 2 retraces exactly 50% of Wave 1.
  2. The sequence is invalid because Wave 5 is shorter than Wave 3.
  3. The sequence is valid because the total swing count is 5, regardless of price overlaps.
  4. The sequence is valid because Wave 3 is the longest and Wave 4 does not overlap Wave 1.

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