If you look at the right part of this chart, you will see 5-waves down from 2070 to 1992 with wave 4 — hitting the 2030 twice — each time turning back down. This is the wave 4 resistance area and is generally a good area to short.
In this case, the 5th wave down may not have been a super clean 1-2-3-4-5 —that 5th wave down could sometimes be a subdivided a-b-c that like:
leading diagonal A (1-2-3-4-5), corrective (a-b-c) B, impulse (a-b-1-2-3-4-1-2-3-4-5) C
corective a-b-c larger B
12-3-4-5 to finish the larger C at 1992.
For more details, reference the microcount on this blog post in what turns out to be an A-wave down (because it was later followed by a big b-wave up). The microcount is reposted here –but note the labeling turns out to be off.
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