SUMMARY
A correction has a beginning, middle and an end stage. The mid stage is called the "Capitulation" stage. This is when holders sell, sell, sell out of fear, fear, fear. They are not able to see with clarity or beyond the simple arithmetic of their paper losses. The emotion and fear get the better of their decision making process and finally throw in the towel. Such activities often occur during the wave 3 of 3 which extends the most in length and violence. This is the stage when reason and analysis matter none to those who have succumbed to the sentiment of fear. Recall that sentiment is a dual state: Fear & Greed.
The below chart is showing the wave 3 of 3 labeled and it could still have further to go down. However, let's see how the overnight price action takes this capitulation phase of the selling. If the price declines below the red C level, the next "landing zone" will have to be utilized for the potential bottom of wave C. However, we are not there.
Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
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Elliott Wave Counting Tutorial #1
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