Wave 2

Wave 2
As the point enough people who were in the original wave consider the stock overvalued & take profits which caused the stock to go down for a while but not going down to its previous lows and move up again.

Wave 3

• Longest and strongest wave.
• Has caught the attention of the mass public.
• More people find out about the stock & went to buy it.

Wave 4

• People take profits because the stock is considered expensive again.
• Tends to be weak because there are usually more people on bullish & waiting to buy.

Wave 5

• This is the point most people get on the stock.
• The price is going up.

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