medium · Elliott Wave Theory motive

A commodity producer observes a 5-wave advance with the following lengths: Wave 1 = 16 points, Wave 3 = 30 points, and Wave 5 = 21 points. Wave 1 ends at 96.00, and the subsequent Wave 4 low is recorded at 104.00.

Which statement best validates this structure?

  1. The structure is invalid because Wave 5 should always be the shortest wave in commodity impulse sequences.
  2. The structure is invalid because Wave 4 must retrace at least 50% of Wave 3 in this sequence.
  3. The structure is valid because Wave 3 is not the shortest wave and Wave 4 does not overlap Wave 1.
  4. The structure is invalid since Wave 3 is shorter than the combined Waves 1 and 5 lengths.

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