I always thought that wave 5 prices couldn't break through the 2-4 line, and in your count it does in PRIMARY wave.
The only exception were waves 5 in the form of terminal wedges. in which their respective waves 2 and 4 could cross the main 2-4, but this wave 5 looks more like an expanding triangle.
If it is valid, why not draw the line 2-4 and get the channel parallel to that 2-4?
The only exception were waves 5 in the form of terminal wedges. in which their respective waves 2 and 4 could cross the main 2-4, but this wave 5 looks more like an expanding triangle.
If it is valid, why not draw the line 2-4 and get the channel parallel to that 2-4?
The 2-4 parallel channelling is just a guide, which may not work well with exponential logarithmic charting !
In equity markets wave3 often overshoots the wave2-wave4 channel.
In commodity markets wave5 often overshoots the wave2-wave4 channel.
To know why this happens, watch from 1:23:18 to 1:28:24: https://youtu.be/jJA58dxmzQk?t=4998
I thought it could be understood without having to draw a picture.
I am not referring to the channel, I am talking about an Elliot rule that wave 5 cannot cut the extension of line 2-4
Unsure of your question, perhaps you can draw it ?
Either of the following are possible:
