The 3rd sub-wave within wave 3 of an impulse. Tends to be the strongest and largest price movement — the most sought-after trading opportunity for Elliotticians.
Description
The 3rd wave of an impulse is typically the strongest and longest actionary wave. Within wave 3, its own 3rd sub-wave (the ‘3rd of 3rd’) is even more powerful. This wave is characterized by broad participation, strong momentum, gap openings, and high volume. It is the wave Elliotticians most actively seek to trade.
Key Points
- The 3rd sub-wave of wave 3 — theoretically the most powerful of all waves
- Characteristics: gap openings, expansion of breadth, peak volume, strong momentum
- Downside equivalent: the most severe decline in a bear market occurs here
- Practical use: after identifying waves 1–2 and (1)–(2) of wave 3, position for the 3rd of 3rd thrust
- Warning: attempting to trade every sub-wave is risky; focus on the clearest opportunities
