It’s where moves are not clear or directional. It’s a special form where despite higher high or lower lows price returns back into the previous ranges. Such overlaps shows that bulls are either struggling in uptrend or bears in downtrend, and it can suggest that sooner or later price will return into the primary direction with an impulsive activity. Normally you will spout an overlapping price action in Elliott wave corrections, but also it can show up between the waves two and four in diagonals.

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