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RE: Multicolor Corp. (LABL)
Good question. I look for the lowest point. It doesn't have be the lowest point for the history; but within that time frame. Form there, I look for impulse or corrections.
Since waves are fractals that occur at all degree of times at the same time; there is always an impulse or correction in progress.
So as long as from that starting point onward it makes a 5 wave combo, it's a valid starting point?
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Yes, but it doesn't always go to five as it can morph into a 3 or a combination. Check out the book: Elliott Wave Principles by Frosst and Prechter.
I've gone through it, and I use waves just to ascertain the stage of the cycle the stock is in. I personally believe sentiment and price action are key drivers but I'm slowly learning the discipline of EW and refining my technique. Thanks @haejin
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