Elliot wave textbook standards
Wave 1 Impulse wave
Wave 2 corrective wave : retracement is 50% -61.8% of wave 1
Wave 3 impulse wave : normally extend 168.1 x wave 1
Wave 4 corrective wave : usually 38.2% to 50.0% of wave 3
Wave 5 impulse wave : tend to be the same lenght as wave 1
Wave A containes 5 waves (intraday)
Wave B usually retrace 50% from wave A but not more than 75%
Wave C equals wave A
Wave C has to pass lows of wave A
Now lets look at the DAX chart
Wave 1-2-3-4-5 seems to follow the textbook standards ( Wave 5 equals Wave 1 in points )
Wave A contains a 5 wave decline (we are now in the 5th wave of Wave A)
If we set 8800 as a low of Wave A a retrace Wave B around 10600-11k
Wave C could end around 7800 and hit the bottom longterm trendline.
Note the time factor is also important.
Looking at the ABC wave decline ,its kind of going to fast.
BUT the decline we had in 2007-2008 was also rather steep and fast after a 5 wave bullrun
Wave 1 Impulse wave
Wave 2 corrective wave : retracement is 50% -61.8% of wave 1
Wave 3 impulse wave : normally extend 168.1 x wave 1
Wave 4 corrective wave : usually 38.2% to 50.0% of wave 3
Wave 5 impulse wave : tend to be the same lenght as wave 1
Wave A containes 5 waves (intraday)
Wave B usually retrace 50% from wave A but not more than 75%
Wave C equals wave A
Wave C has to pass lows of wave A
Now lets look at the DAX chart
Wave 1-2-3-4-5 seems to follow the textbook standards ( Wave 5 equals Wave 1 in points )
Wave A contains a 5 wave decline (we are now in the 5th wave of Wave A)
If we set 8800 as a low of Wave A a retrace Wave B around 10600-11k
Wave C could end around 7800 and hit the bottom longterm trendline.
Note the time factor is also important.
Looking at the ABC wave decline ,its kind of going to fast.
BUT the decline we had in 2007-2008 was also rather steep and fast after a 5 wave bullrun