The Green Target Boxes are high probability reversal zones for corrective moves down. When you see a green target box that means the current count of waves (output of the Wave Analysis) considers that:
– the direction of the prevailing trend is up; and
– the current or expected decline is a temporary pullback; and
– price is expected to find support in that green target box; and
– after that pullback price may continue the move in the direction of the main trend.
The Red Target Boxes are high probability reversal zones for moves up.
The Harmonic Elliott Wave theory proposes that any trending move is subdivided into five waves ( please see the chart below ).