FIVE WAVE UP.
WAVE C of 3 UP
Wave C of 3 is the “heart” of the rally. This wave C of 3 normally looks like a crazy emotional unstoppable move up. The slope of ascent of price is much steeper than that the one in preceding impulsive wave A of 3. And wave C of 3 is almost always longer than preceding rally in wave A of 3. This move sometimes looks parabolic. All pullbacks are shallow and bears get desperate because the move pushes their short positions underwater and does not give them a chance to cover even at breakeven. The wave C of 3 concludes wave 3, the strongest part of the Five Wave fractal.
MAIN FEATURES
- Wave A of 3 has to be subdivided into five small waves i, ii, iii, iv and v
- Subwave A of 3 may or may not make a new higher high over the top of preceding rally in wave 1 up
- Subwave A of 3 rarely becomes a strong rally, it builds a base for the stronger rally in subwave C of 3
The best way to understand how this pattern works is to study collection of charts with real life examples.
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