So many times I was caught by these in the early years of...

So many times I was caught by these in the early years of trading. Stock has made a lower high after a great rally and should pull back 50% before proceeding. MD irrelevant in a falling stock, it can disappear as fast as it appears.

Normally with an extended fifth wave like this, they pull back to wave 1 of 5 which is the range 3.8 to 5.2.

Alternatively, if the market is in a good mood it might stick at 6.5 for a while, but that does not bode so well for the next rally.