medium · Elliott Wave Theory motive
A bullish impulse shows wave 2 as a sharp 78% retracement of wave 1, and wave 4 as a shallow 23% sideways flat. An analyst worries the deep wave 2 breaks a rule.
Which statement most accurately resolves whether any RULE (not guideline) is violated?
- No rule is broken: wave 2 may retrace any amount short of 100% of wave 1, and the deep-versus-shallow contrast actually satisfies the guideline of alternation
- A rule is broken because wave 2 is hard-capped and may not ever retrace beyond 61.8% of wave 1 in any valid, rule-compliant impulse count
- No rule is technically broken, but the count is still invalid since alternation is treated as a hard rule forcing waves 2 and 4 to always differ in depth
- A rule is broken because wave 2 must always finish shallower in percentage terms than wave 4 does, in order to preserve the impulse's overall rightward price translation
Sign up free to see the explanation and track your rank →
More Elliott Wave Theory motive practice
- In a five-wave advance, Wave 1 is 10 points long, Wave 3 is… — How should this count be co
- If Rule 3 must be satisfied, what is the highest price Wave 4 can reach?
- An analyst identifies a 5-wave pattern where Wave 4 overlaps… — Where is this pattern most
- When analyzing an Ending Diagonal, what is the 'Slope Comparison' requirement for confirmi
- If Wave 3 reaches $160.00, which of the following price levels would invalidate the impuls
- You observe a five-wave motive move in a wedge shape where W… — Where in the larger trend
- What is the 'Orthodox Extreme' in a five-wave impulse that ends with a truncated fifth wav
- If the next correction drops the price to $118 before a final rally to $180, why is this c