Subwave A of Wave 5 up
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FIVE WAVE UP.
WAVE A of 5 UP
Wave A of 5 is a bullish reaction to bearish pullback in wave 4 down. When the pullback in wave 4 down fails to break under lows of the preceding correction in wave B of 3 bulls counter attack and push the price back up to the top of the preceding rally in wave 3 up. Wave A of 5 creates a well known “double top” pattern recognized by conventional technical analysts as a sign of impeding bearish reversal.
The best way to understand how this pattern works is to study collection of charts with real life examples.