The fifth wave is usually the strongest for some commodities, such as gold, crude oil, and currencies. This is where the longest leg of the waves will be formed. It is also during this final phase that the price advance begins to slow. From the rule of using multiple analysis techniques, other indicators and oscillators, such as stochastics and MACD (moving average convergence/divergence), will begin to show signs of being overbought in a bullish trend or oversold in a bearish trend. We notice during this period that the market is beginning to lose momentum and that the trend may be exhausting itself. One classic chart pattern that is associated with giving clues that the peak in prices has occurred in wave five is the formation of a wedge pattern, as Figure 7.6 shows.
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