{"id":9676,"date":"2022-10-12T19:42:40","date_gmt":"2022-10-12T19:42:40","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9676"},"modified":"2022-10-12T19:42:40","modified_gmt":"2022-10-12T19:42:40","slug":"corrective-waves","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/corrective-waves\/","title":{"rendered":"Corrective Waves"},"content":{"rendered":"\n

The 5-wave trends are then corrected and reversed by 3-wave countertrends<\/strong>.<\/p>\n\n\n\n

Letters are used instead of numbers to track the correction.<\/p>\n\n\n\n

Check out this example of a smokin\u2019 hot corrective 3-wave pattern!<\/p>\n\n\n\n

\"ABC<\/figure>\n\n\n\n

Just because we\u2019ve been using a bull market as my primary example doesn\u2019t mean the\u00a0Elliott Wave Theory\u00a0doesn\u2019t work on bear markets.<\/p>\n\n\n\n

The same 5-3 wave pattern<\/strong> can look like this:<\/p>\n\n\n\n

\"Reverse<\/figure>\n\n\n\n

Types of Corrective Wave Patterns<\/h2>\n\n\n\n

According to Elliott, there are 21 corrective ABC patterns ranging from simple to complex.<\/p>\n\n\n\n

\u201cUh, 21? I can\u2019t memorize all of that! The basics of the Elliott Wave Theory are already mind-blowing!\u201d<\/p>\n\n\n\n

Take it easy, young padawan. The great thing about Elliott Wave is you don\u2019t have to be above the legal drinking age to trade it!<\/p>\n\n\n\n

You don\u2019t have to get a fake ID or memorize all 21 types of corrective ABC patterns because they are just made up of three very simple easy-to-understand formations.<\/p>\n\n\n\n

Let\u2019s take a look at these three formations. The examples below apply to uptrends, but you can just invert them if you\u2019re dealing with a\u00a0downtrend.<\/p>\n\n\n\n

The Zig-Zag Formation<\/h2>\n\n\n\n
\"Zig-Zag<\/figure>\n\n\n\n

Zig-zag formations are very steep moves in price that go against the predominant trend.<\/p>\n\n\n\n

Wave B is typically shortest in length compared to Waves A and C.<\/p>\n\n\n\n

These zig-zag patterns can happen twice or even thrice in a correction (2 to 3 zig-zag patterns linked together).<\/p>\n\n\n\n

Like with all waves, each of the waves in zig-zag patterns could be broken up into 5-wave patterns.<\/p>\n\n\n\n

The Flat Formation<\/h2>\n\n\n\n
\"Flat<\/figure>\n\n\n\n

Flat formations are simple sideways corrective waves.<\/p>\n\n\n\n

In flats, the lengths of the waves are GENERALLY<\/strong> equal in length, with wave B reversing wave A\u2019s move and wave C undoing wave B\u2019s move.<\/p>\n\n\n\n

We say generally because wave B can sometimes go beyond the beginning of wave A.<\/p>\n\n\n\n

The Triangle Formation<\/h2>\n\n\n\n
\"Triangle<\/figure>\n\n\n\n

Triangle formations are corrective patterns that are bound by either converging or diverging\u00a0trend lines.<\/p>\n\n\n\n

Triangles are made up of 5-waves that move against the trend in a sideways fashion. These triangles can be\u00a0symmetrical,\u00a0descending,\u00a0ascending, or expanding.<\/p>\n","protected":false},"excerpt":{"rendered":"

The 5-wave trends are then corrected and reversed by 3-wave countertrends. Letters are used instead of numbers to track the correction. Check out this example of a smokin\u2019 hot corrective 3-wave pattern! Just because we\u2019ve been using a bull market as my primary example doesn\u2019t mean the\u00a0Elliott Wave Theory\u00a0doesn\u2019t work on bear markets. The same 5-3 wave […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[803],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9676"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9676"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9676\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}