Question of the Week: 3/17/2010
Twenty-years (20) after Mastering Elliott Wave, do you still mantain that the 0-2 and 2-4 trendlines should not be violated by any leg of wave-3?
When it comes to standard (trending) Impulse patterns (5-3-5-3-5), the answer is YES. When it comes to Terminal Impulse patterns (3-3-3-3-3), it is an entirely different story. Terminal patterns are composed of five corrections strung together to form the last impulsion of a larger formation. Because Terminals are conclusionary patterns, the 0-2 and 2-4 trendlines ARE allowed to be broken during the formation of wave-3. Such breaks can even occur more than once during wave-3's formation.
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