Hi Haejin, I just posted this question on an earlier one of your blogs, but I figured you might review this first. I think your first two charts in this post answer a question that I have been wondering about recently, but I'd like to make sure I have it right. You have said frequently that after 5 waves up, the abc correction will go down to the level of the previous wave 4 ( I take that to mean a range of the top of 3 and the low of 4).
BUT, what happens when it is wave 5 of 5? Do you expect the correction to go down to the higher order or lower order 4? In this case, you have white circled 5 of blue v of white (iii) completing (forward price discernment). You then have the white (iv) wave correction to the range of blue iii-iv, that is the higher order, rather than white circled 3-4 (the lower order).
Is that the general rule? Would really appreciate confirmation (or correction!). Thanks as always for your time!
The books says to wave 4 of lesser degree. However, I often have wave 4 land at the early part of a heavy support zone. Note how the bull flag is exactly that support zone.