A picture speaks a thousand words, not going to say much about it but from the chart above clearly illustrated how FTSE STI moved since the crash in 2016 after hitting the high in 2015. The yellow region pretty much confirmed wave 4 has completed. Now the next question is how high this wave 5 going to be. Should it unable to break 3,500 then the current uptrend is just a continuous of the crash since hitting the high in 2015. However, the ability to break above 3,500 will draw into another conclusion that current uptrend is the wave 1 of a new bull market.
So which is which ? Never try to take a bet on it but rather consider the possibility of both scenario and think of a strategy that works on both.
