There is a common belief that the trend movement consists of three waves, i.e. towards the trend and two corrective ones.
Different interpretations for the waves to form may be taken. Peculiarities of perception are also of great importance. However, according to the chart, there is a complete downtrend.
This hypothesis can be supported by the following example. Let’s suppose that the price from the last wave’s minimum (point 5) moves higher than the point 4.
If so, then it will be safe to say that another wave combination (the uptrend one) has begun to form.
This content is for informational purposes only and is not intended to be investing advice.