XAUUSD

Elliott Waves must be proportional in both price and time. This means that the wave patterns within the Elliott Wave Theory—whether they are impulse waves or corrective waves—should maintain a degree of proportionality to align with the theory’s principles.

For example:
Price Proportionality: The lengths of waves often adhere to Fibonacci ratios (e.g., wave 3 is commonly 1.618 times wave 1 in an impulse wave).
Time Proportionality: The duration of each wave should also exhibit a sense of balance, though time is typically less rigid compared to price.

This proportionality helps traders identify and confirm wave patterns accurately in market analysis.

Based on this theory we can learn that from the higher degree waves, the formation of wave (3) might still be in form to be completed at the projected level. While at the same time, the correction of wave (3) to form wave (4) may be expected as an alternation for wave (2). So we are either in for a longer correction to wave (4) or wave (3) is not yet complete.