Here is a newspaper article that may be of assistance to all who study the Elliott wave theory. In her date 6 August says that U.S. indices ended the day with moderate increases, reaching a new three-month high amid persistent expectations that the European Central Bank will take action to overcome the eurozone debt crisis. It is the explanation of this fact, the opinion of a senior expert on the stock market in New York, who said: "Nothing has been corrected in Europe, but things seem to be improving and seems unlikely to happen any big explosion."
This very accurately describes the sentiment that we believe wave analysts are the driving force for drawing the corrective wave 2 - optimism that things seem to be improving, even though nothing has changed. Yes, the price has reached a new peak of three, but before that there was a higher peak, which was the beginning of wave 1.
So! Because nothing is certain, both in life and in the global financial markets, here you should make an appointment. And it is that we only predict and plan future but never really clear how it will happen. This applies with full force of wave 2. It can even adjust the wave 1 to 100% and then we Formation "double top". Sometimes it gets so optimism pushes the price higher than the previous peak and then we "stop" temporary belong the wave count and this increase to the previous movement. So the golden rule of the wave analyzer is:
Participate in wave 2, but very careful with it!