If you are a proponent of the Elliott wave theory, you are most apt to do which one of the following?

Question

Quizplus · Accepted Answer

According to the Elliott wave theory, a wave 2 correction is typically followed by a strong wave 3 move in the same direction as the overall trend. Therefore, buying on the completion of wave 2 is often seen as a good opportunity to enter a trade in the direction of the trend. Option A is incorrect because wave 2 is usually a correction, not a selling opportunity. Option B is also incorrect because wave 3 is usually the strongest wave and not a time to sell. Option C refers to a corrective wave in a different type of Elliott wave pattern, so it is not applicable. Option E is also incorrect because wave 5 is often the final wave in a trend and not a clear signal to sell.

If You Are a Proponent of the Elliott Wave Theory