As a note, i do not short. Previous Long on LTC was successful and ended up getting stopped out at 342. LTC performed a perfect Elliot Wave. Now in ABC correction Phase. Caution is advised, and very wary of opening longs. wave 2 = .5 of wave 1 Wave 3 = 3.618 of wave 1 Wave 4 = .5 of wave 3 wave 5 = 1.618 of wave 1
@PatG416, Brah i presented you with information, i dont really care about your opinion. I dont troll your trades, please go somewhere else.
ecicic
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@PatG416, sorry thought you were same dude as below. Either way feel free to look it up and also i posted the information. There is no rule in elliot waves that 5 has to be above 3.
UnknownUnicorn788630
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No, it didn't... For it to be successful, wave 5 needs to close higher than any of the other waves. In your chart, it closes below the top of wave 3, so it's invalid like this.
ecicic
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@MonocoleDundee, Its called a Wave 5 failure or a Truncated wave 5.
ecicic
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@MonocoleDundee,
Failure or Truncated 5th
Description
A failure is an impulsive pattern in which the fifth wave does not exceed the third wave. Fifth waves, which travel only slightly beyond the top of wave 3, can also be classified as a kind of failure. It indicates that the trend is weak and that the market will show acceleration in the opposite direction.
Rules and guidelines
The most important rules and guidelines are:
Wave 2 cannot be longer in price distance than wave 1, so it should not go beyond the origin of wave 1.
Wave 3 is never the shortest when compared to waves 1 and 5.
Wave 4 cannot overlap wave 1, except for diagonal triangles and sometimes in waves 1 or A, but never in a third wave. There should not be overlap between wave 1 and A.
Wave 5 fails to go beyond the end of wave 3.
As a guideline the third wave shows the greatest momentum.
As a guideline the internal wave structure should show alternation, which means different kinds of corrective structures.