As we posted yesterday, we forecast waves without alternatives. When forecast fails is when we focus on alternative count.
Elliot waves theory define impulsive and retrace waves. In this case we are forecasting? that the trend has changed because wave B is in place,so we have impulsive waves 1,3 & 5 down and retracement waves 2 & 4 up. If we are right and the impulsive trend is down then we will have as alternatives retracements, waves 2 and 4.
The maximum retrace that this wave 2 can have,if we are right, is 100%.