Elliott Wave Theory shows that market trends move in five impulsive waves and three corrective waves. We can improve our trading strategies by including high-frequency trading methods to find better entry points. By studying market cycles across different assets, we can pinpoint a “middle group” that aligns with the current cycle, which can help with trades, such as those involving Delta Air Lines (DAL). Wave patterns map out market phases. In upward trends, these sequences finish in 5, 9, or 13 swings, while corrective phases end after 3, 7, or 11 swings. If a sequence is incomplete, it may indicate more price movement in the same direction. This idea is important for evaluating Delta Air Lines, particularly when buying during corrective phases characterized by these wave patterns. Since April 2025, Delta’s price has reached new highs in three waves, hinting that it may continue to five waves. Our risk management system uses pivots to spot possible market traps. Delta Air Lines is currently in an incomplete seven-swing corrective sequence. From this, we see a good buying zone between $65.37 and $61.37, offering a strong chance for a trend resurgence. Last year, we pinpointed a high-probability buying zone for Delta Air Lines between $65.37 and $61.37. This was based on an incomplete seven-swing corrective structure after the highs of 2025. We expected the main upward trend to restart from this price range. Looking back, the market did provide an entry point in that blue box area during the third quarter of 2025, before the following price rise began. This rally confirmed the wave structure, supporting the idea that the movement from the April 2025 low was part of a bigger impulsive trend. This trend has solid backing from strong fundamentals, as recent IATA reports from late 2025 showed that global passenger traffic rose 5% above pre-pandemic levels. Now that Delta is trading near $82, the chance to buy on dips has passed, and traders should rethink their strategies. With Delta’s strong earnings report for the fourth quarter of 2025—where it surpassed revenue expectations by 4% and boosted its 2026 outlook—implied volatility in options has likely fallen. This makes protective measures, such as buying put options to hedge long stock holdings, more affordable. For those wanting to start new positions, selling cash-secured puts below the current market price, perhaps around the $75 level, could be a wise move. This strategy lets a trader earn premium if the stock stays strong or buy shares at a better price during a minor pullback. This fits with the belief that the larger five-wave upward sequence is still incomplete. The broader economic environment remains favorable. WTI crude oil prices have stabilized around $85 per barrel throughout winter. We are now looking for the next corrective pullback to identify potential buying areas. Traders should watch swing counts closely, as any three-wave drop could indicate the next entry point for continuing the primary trend.

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