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Trading Terms

Zigzag

The Elliott three-wave pattern, commonly seen in a bull market, can also appear in a bear market with an inverted structure. This pattern is characterized by a 5-3-5 subdivision, with wave B's peak noticeably lower than wave A's starting point. Understanding this pattern can provide valuable insights into market trends and help make informed financial decisions. Keep in mind, however, that market movements are not always predictable and caution should always be exercised when making investment choices.
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