October 2012
Intermediate to advanced
250 pages
6h 3m
English
Wave 4 will often become the first support level of the corrective A-B-C retracement following the completion of a five-wave structure. Wave 4 should not retrace the entire Wave 3. Wave 4 does not retrace past the end of Wave 1 or enter the territory of Wave 2. Frequently, the end of Wave 4 is accompanied by extreme readings in the momentum oscillator. The momentum oscillator will normally drop by more than 90 percent from its highest bar to below its zero line. Wave 4 normally retraces about 38.2 to 61.8 percent of Wave 3. Triangle patterns are often found in Wave 4. According to the Rule of Alternation, the pattern formation of Wave 4 will alternate with that of Wave 2 in time and price.
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