Channel The channel waves contains wave five. To draw the channel waves, simply connect the extremes of wave one and wave two with a trend line. Take a parallel of this line, and place it on the extreme of wave three. price action that stays within one price channel is often corrective. In a nutshell, wave (v) in advance prices need to break out of the base channel to confirm the upward trend. Movement below wave (i) of the acceleration channel confirms that wave four is over, and penetration of the bearish acceleration confirm signals that wave five is under way.
fibonaccically 161.8% is the next target of wave (v)