The Initial Swing

The initial swing off a completed 5 wave sequence will often find support/resistance in the area of the prior minor Wave (4).

Again, this is a very useful observation as it gives you an approximate target for the first swing of the correction following the end of a completed 5-wave sequence. In Elliott wave terms this is the Wave (1orA).

Here you can see how the first swing off the Wave (5) high found support “in the area of” the price level of the prior minor Wave (4). In practice this area is usually slightly exceeded, and support is found just beyond this prior Wave (4) level, this is usually at the Decision Point (DP) level form the prior Wave (4).