The Elliott wave theory gives a buy signal when you can identify a primary bull trend by identifying ________.
A) when the long-term direction of the market is positive
B) when the long-term direction of the market is negative
C) when the long-term direction of the market is stable
D) good stocks without regard to the long-term direction of the market

Question

Quizplus · Accepted Answer

According to the Elliott wave theory, a buy signal is generated when a primary bull trend is identified. This means that the long-term direction of the market is positive, indicating an upward movement for stocks. Therefore, choice A is the correct option. Choice B is incorrect as a primary bear trend indicates a negative long-term direction. Choice C is also incorrect as a stable market could represent either an uptrend or downtrend, making it unclear for a buy signal. Choice D is incorrect as the Elliott wave theory considers the long-term direction of the market as one of the key factors in generating buy or sell signals.

The Elliott Wave Theory Gives a Buy Signal When You