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chart. Ater this pattern has played out (the end of 5) there is typically a corrective series of waves in the opposite direction of the prior trend, labeled as A, B, and C on the chart. While the pattern can be flexible and open to interpretation there are some general guidelines which state that:
Wave 2 must not retrace more than 100% of Wave 1.
Wave 3 must not be the shortest of the three impulse waves.
Wave 4 must not overlap Wave 1.
Some people strongly believe in this chart pattern, while others oppose it. Regardless of where you stand, if you see a clear pattern like this emerge it might be best to consider it in combination with your other charting techniques to see if it can add value to your next trade. We hope you too can enjoy the waves of investment gains within the cannabis space.