This scenario is also possible. In Elliott Wave Theory, waves are always more reactive than predictive, meaning they require confirmation to be validated. For this wave structure to be established, the price must break through the purple resistance again and move upward.
Note
If the wave count follows this scenario and the price breaks through the pink resistance, it could conclusively resolve dozens of potential scenarios related to the 3rd and 4th waves in this cycle.Note
Waves are naturally formed by the psychology and behavior of market participants, and the patterns of sub-waves can fluctuate depending on external factors or events. This reflects the natural movement of the market, which cannot be artificially manipulated by any individual or group.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.