AEDIFICA - Alternative Medium Timeframe Elliot Wave analysisIn this scenario, I’m interpreting the larger Wave 1 as a potential leading contracting diagonal, where each subwave is unfolding as a zigzag (3-3-3-3-3) rather than the typical 5-3-5-3-5 structure.Currently, we appear to be in Wave 4 (Pink) of this diagonal, which seems to be in the final stages of its downward leg before starting Wave 5 the final move of the pattern. The decline in Wave 4 (Pink) may take the form of either a WXY or an ABC correction; continued price development will help validate the count.
I believe this interpretation aligns well with the recent price action, particularly because the market has been moving sideways for quite some time now without delivering a convincing impulsive move to the upside.
Disclaimer: This analysis is for informational and educational purposes only and should not be considered financial or investment advice. All trading involves risk, and you should perform your own due diligence before making any trading decisions. The author is not responsible for any losses that may arise from reliance on this content. Always trade at your own risk. #AED
