Bull Market
A bull market in Elliott Wave context is a five-wave impulse advance at a large degree. Waves 1, 3, and 5 push prices higher while Waves 2 and 4 correct along the way but never erase the gains fully. Wave 1 is usually met with skepticism because the previous bear market mindset dominates. Wave 3 is where the trend becomes obvious and volume surges as the crowd piles in. It's almost always the longest and strongest wave. Wave 5 is the final push higher, often driven more by speculation and euphoria than fundamentals. The corrective waves within the bull, Waves 2 and 4, serve as the entry points that keep the trend healthy. When all five waves complete, you know a significant correction is coming. Identifying where you sit within this five-wave structure is the single most important thing for positioning your trades in the right direction.
Apple stock advances from $124 in a clear five-wave impulse. Wave 1 rises to $157, Wave 2 pulls back to $138, Wave 3 surges to $198 on strong earnings, Wave 4 corrects sideways to $183, and Wave 5 completes at $220. The entire move from $124 to $220 is one bull market impulse at the primary degree.