Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
Wave 3
This is usually the longest and strongest wave. The stock has caught the attention of the mass public. More people find out about the stock and want to buy it. This causes the stock’s price to go higher and higher. This wave usually exceeds the high created at the end of Wave 1.
Wave 2
At this point, enough people who were in the original wave consider the stock overvalued and take profits. This causes the stock to go down. However, the stock will not make it to its previous lows before the stock is considered a bargain again.
Wave 1
The stock makes its initial move upwards. This is usually caused by a relatively small number of people that all of the sudden (for a variety of reasons, real or imagined) feel that the price of the stock is cheap so it’s a perfect time to buy. This causes the price to rise.
Impulse Wave 1 - The Accumulation Stage the Wave right after a prolonged downtrend.
This stock has been going down, and starts to trade sideways, forming a base.
The sellers who once had the upper hand, begin to lose their power, because the buyers are starting to get more aggressive.
The stock just drifts sideways without a clear trend.
Everyone hates this stock! This is the time to be Loading the Boat !!
Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
Wave 4
Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
Wave 4
Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
Wave 4
Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
Wave 4
Traders take profits because the stock is considered expensive again. This Wave tends to be weak because there are usually more people that are still bullish on the stock and are waiting to “buy on the dips.”
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