Bob Prechter calls this setup a 'wonder to behold'

By Elliott Wave International

What’s your favorite Elliott Wave setup?

For many traders, the answer is simple: third waves.

As Elliott Wave International founder Robert Prechter puts it, third waves are “wonders to behold” because they are typically the longest, most powerful waves in a move.

Of the 5 waves in an Elliott wave impulse, the 3rd wave is the one you really want to catch -- and you definitely don’t want to be on the wrong side of one!

This idealized chart shows you what I mean:

You can see exactly what we’re talking about in these three examples. All of them are from the May 2025 issue of EWI's Global Market Perspective. And all of them happened to be bullish -- but the set-up works just as well on bearish moves.

The charts below show you when the forecast was made and what happened after:

Right now, the June 2026 Global Market Perspective identifies 12 markets showing third-wave behavior already underway - or just beginning to unfold.

See ALL 12 third-wave setups now inside EWI's Global Market Perspective >>

This article was syndicated by Elliott Wave International. EWI is the world's largest indepedant market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.