Elliott Waves Quiz 2

When analyzing wave 4, what guideline can help determine if it is likely to form a triangle?

• It retraces more than 61.8% of wave 3.

• It shows strong momentum compared to wave 2.

• It forms over a longer time period compared to wave 2.

• It does not retrace into the price territory of wave 1.

What is a "leading diagonal" in the context of Elliott Wave Theory?

• A pattern that occurs in the middle of an impulsive wave

• A pattern that occurs at the beginning of an impulsive wave

• A pattern that occurs at the end of a corrective wave

• A pattern that only occurs in Wave 4

Which wave is often extended in an impulsive wave sequence?

• Wave 1

• Wave 2

• Wave 3

• Wave 5

How can Fibonacci retracement levels be used in conjunction with Elliott Wave Theory?

• To confirm the end of an impulse wave

• To measure the depth of corrective waves

• To identify the start of a new wave cycle

• To predict the duration of a wave

Which of the following is a guideline rather than a strict rule in Elliott Wave Theory?

• Wave 3 is never the shortest wave.

• Wave 4 does not enter the price territory of Wave 1.

• Wave 2 does not retrace 100% of Wave 1.

• Wave 5 often shows divergence with momentum indicators.

When using Elliott Wave Theory to analyze a market, what is the importance of wave degrees?

• They determine the exact length of each wave.

• They help identify the fractal nature of market movements.

• They are used to set stop-loss levels.

• They indicate the time duration of each wave.

In Elliott Wave Theory, how is a "flat correction" structured?

• 3-3-3

• 5-3-5

• 3-3-5

• 5-5-5

What is the typical Fibonacci extension level for Wave 3 in an impulsive sequence?

• 61.8%

• 100%

• 161.8%

• 200%

Which of the following best describes the rule of alternation in Elliott Wave Theory?

• Wave 2 and Wave 4 will always have the same structure.

• If Wave 2 is a sharp correction, Wave 4 will likely be a sideways correction.

• Wave 3 will always be the longest wave.

• Wave 1 and Wave 5 will have the same length.

How can you distinguish a triangle pattern in Elliott Wave Theory?

• It has five waves labeled A-B-C-D-E.

• It is always found at the beginning of a wave cycle.

• It follows a 3-3-3-3-3 structure.

• It is always a corrective wave pattern.