Practical application of Elliott Wave Theory:
After wave 1 up reached its high wave 2 down is correcting wave 1up!
Wave i: When the first wave of a new impulse wave begins, the previous down Move is considered still strongly in force.
Wave ii: The second wave corrects wave1, but can never extend beyond the starting point of wave 1.
Wave iii: Wave three is usually the largest and most powerful wave in a trend
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