Is a Powerful Third Wave Still Unfolding? | Elliott Wave Perspec

DAX 40 | Is a Powerful Third Wave Still Unfolding? | Elliott Wave Perspective

The long-term structure of the DAX 40 continues to align with the characteristics of a developing impulsive trend. If the current wave count remains valid, the market may still be advancing within a higher-degree Wave III, the phase that often carries the strongest momentum of an impulsive cycle.

One of the most interesting aspects of the current structure is the relationship between the lower-degree waves. The near equality between the lower-degree Wave (1) and Wave (3) increases the possibility that Wave (5) of the same degree could become extended. If this scenario unfolds, the market may be approaching the next acceleration phase, with the potential for the internal Wave (5) of (5) to extend as well, providing the final impulsive push within the larger Wave III.

An alternative scenario should also be considered. It is possible that Wave (5) of this lower degree has already begun and that the market is currently developing its internal subdivisions. In that case, the primary focus shifts to whether the final internal Wave (5) evolves into an extended structure, which could significantly influence both the strength and duration of the ongoing advance.

As always, this analysis is based solely on the current Elliott Wave Principle structure, Fibonacci relationships, and price behavior. It reflects a research-based market perspective rather than a prediction. Should the market structure evolve, the wave count and both scenarios will be reassessed accordingly.

A more detailed breakdown of the weekly, daily, and 4-hour structures will be published in the coming days to further evaluate the market's position within this larger cycle.

"Markets don't reveal certainty. They reveal probability through structure."

Mr. Nobody | Elliott Wave Principle 🎧📊

DAX Index
Jul 21, 2022
DAX in correction