wave-A-of-5
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.
MAIN FEATURES
- Wave A of 5 has an impulsive structure and subdivided into five smaller waves
- Wave A of 5 is too weak to make a sustainable break-out over the top of preceding rally in wave 3 up
- It can stall a little bit under or over the previous top before another pullback in wave B of 5 starts
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