Elliott Wave Patterns: Five-Wave Rallies vs. Three-Wave Bounces

I don't judge a rally by its height, I judge its shape.

These two climb exactly as far. On the left, five waves, big pushes, shallow dips, and the fourth never gets back to the first.

On the right, three waves that keep overlapping, the middle one giving up most of the first.

I can usually spot that early. A bounce in three waves after a big drop is a red flag to me, never a green light.

Across a full cycle, accounts bleed in the second, fourth, and B-waves.

B is the sneakiest. When a market feels wrong to me, I ask if I'm inside a B-wave.

In a correction, I study the shape and wait.

The real move begins after it. Shape is evidence, not proof.

Diagonals and strong C-waves can bend it.

Same climb, a different story.