I want to talk about the use of wave analysis in trading, and specifically about truncation. What does this phenomenon of Elliott waves mean and how to use it.

If you use wave analysis, you should be prepared for the fact that sooner or later you will meet with the truncation of the fifth wave. This situation occurs when its indicators do not go beyond the range of the third wave. Truncated Elliott waves can be of two types: Impulse wave and diagonal wave https://fbs.com/analytics/guidebooks/what-does-truncation-mean-259 the upcoming powerful movement against the trend.