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1. Current Market Situation (Wave 3):
The market is currently in Wave 3, which is usually the strongest and longest wave in Elliott Wave Theory.
Wave 3 is known for its powerful upward movement.
This is typically the wave where most traders and investors jump in, creating significant momentum.
2. Approaching the End of Wave 3:
Right now, Wave 3 doesn’t seem fully complete, but it’s close to its end. You can identify this because:
Momentum starts to slow down as the price nears resistance levels.
Wave 3 often reaches Fibonacci extensions like 1.618 or 2.618, which are key indicators for its completion.
3. Retracement in Wave 4:
After Wave 3 finishes, the price will likely pull back into Wave 4. This is a normal retracement where the market consolidates some of Wave 3’s gains.
The retracement typically hits Fibonacci retracement levels of 0.382 or 0.5.
Wave 4 is usually a smoother and less volatile wave compared to Wave 2.
4. Completion in Wave 5:
Finally, Wave 5 is the last wave in the trend. This wave completes the overall upward movement.
Wave 5 generally creates a new high, but it’s often less strong compared to Wave 3.
Key Takeaways:
Right now, the market is still in Wave 3 but close to finishing it. After that:
Expect the price to pull back into Wave 4 at around Fibonacci 0.382 or 0.5 retracement levels.
Wave 5 will follow, taking the price higher to finish the trend.
Pro Tip:
If you're trading, wait to confirm the end of Wave 3 and the start of Wave 4 before entering. Using tools like RSI or MACD can help you verify the momentum and trend shifts.
The market is currently in Wave 3, which is usually the strongest and longest wave in Elliott Wave Theory.
Wave 3 is known for its powerful upward movement.
This is typically the wave where most traders and investors jump in, creating significant momentum.
2. Approaching the End of Wave 3:
Right now, Wave 3 doesn’t seem fully complete, but it’s close to its end. You can identify this because:
Momentum starts to slow down as the price nears resistance levels.
Wave 3 often reaches Fibonacci extensions like 1.618 or 2.618, which are key indicators for its completion.
3. Retracement in Wave 4:
After Wave 3 finishes, the price will likely pull back into Wave 4. This is a normal retracement where the market consolidates some of Wave 3’s gains.
The retracement typically hits Fibonacci retracement levels of 0.382 or 0.5.
Wave 4 is usually a smoother and less volatile wave compared to Wave 2.
4. Completion in Wave 5:
Finally, Wave 5 is the last wave in the trend. This wave completes the overall upward movement.
Wave 5 generally creates a new high, but it’s often less strong compared to Wave 3.
Key Takeaways:
Right now, the market is still in Wave 3 but close to finishing it. After that:
Expect the price to pull back into Wave 4 at around Fibonacci 0.382 or 0.5 retracement levels.
Wave 5 will follow, taking the price higher to finish the trend.
Pro Tip:
If you're trading, wait to confirm the end of Wave 3 and the start of Wave 4 before entering. Using tools like RSI or MACD can help you verify the momentum and trend shifts.
Disclaimer
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