Here, during the impulse phase, waves 1, 3, and 5 represent large drops in the market, while waves 2 and 4 represent small rises in the market. During the corrective phase, waves a and c represent larger rises in the market while wave b represents a small drop. Overall, there is a net market loss.
While the Elliott Wave Theory is a useful strategy, one major setback is that the time span of each wave is variable and therefore, predicting the market is still difficult.
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