Truncated 5 wave

Truncated 5 wave - notion Elliott wave theorywhich is an exception to the general rules of the 5-wave layout, when wave 5 does not reach the level of wave 3, thus making the structure truncated.

More often than not, the "truncation" or "trimming" of the 5th wave occurs after a strong impulse of the 3rd wave, so it makes sense to keep a close eye on this situation in trading.