Combining a basic 5-wave impulse sequence with a basic 3-wave corrective sequence yields a complete Elliott Wave sequence, which is a total of 8-waves.
According to Elliott, this complete sequence is divided into two distinct phases: the impulse phase and the corrective phase. The abc corrective phase represents a correction of the larger impulse phase.
Fibonacci retracement levels apply to a bounce, or corrective advance, after a decline. Once a bounce begins, chartists can identify specific Fibonacci retracement levels for monitoring.
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