After the formation of the 5 impulsive waves, they are then corrected and retraced by the 3 waves with the first wave moving in the opposite direction of the previous trend but never move beyond the origin of the previous impulsive wave. The market corrects up or down depending on the trend.
The letters a,b,c are used to label these wave respectively
The corrective waves can be zigzag, flat, triangles or a combination.
A zigzag correction wave.
This is a 3 wave correction labelled A-B-C and is divided into a sequence of 5-3-5.
A and C are motive waves with 5 sub-waves while B is a corrective wave with 3 sub-waves.
Wave A and C are of the same length and the zigzag is the simplest of the corrective waves. It may form in a single, double or sometimes a triple form where 2 or 3 zigzag waves are connected.
Normally shows up in the second wave of an impulse wave.
Flat correction wave
A 3-wave correction where the sub-waves appear inform of 3-3-5.
It is labelled A-B-C where by A and B are corrective with 3 sub-waves and C is a motive wave with 5 sub-waves.
It is flat because it moves in the sideways direction. Normally shows up in the fourth wave of an impulse wave. The flat correction can appear as a regular flat, expanded flat or running flat.
Are overlapping five wave patterns labeled A-B-C-D-E subdivided into 3-3-3-3-3. The triangle corrections move in a side ways movement and are associated with decreasing volumes and volatility. The correction has five waves and each subdivide into 3 waves.
This may appear in four different ways.
It usually happens in wave B or 4, subdivided into three 3-3-3-3-3. Subdivisions can either be abc, wxy or flat.
Combinations (Double and Triple)
This is the side ways combinations of the corrective pattern; Double threes and Triple threes. It is combination of the zigzag, flat and triangles making a flat correction extending side ways.
Double threes and triple threes are horizontal in character
This is a three sideways combination of two corrective patterns labeled WXY. Wave W & Y subdivisions can be zigzag, flat or smaller degree double three or triple three. X can be any wave
The triple three is a side ways combination of 3 corrective waves labeled WXYZ. Wave W, Y & Z subdivisions can be zigzag, flat, double three of smaller degree or triple three of smaller degree. Wave X can be any corrective wave.
The Elliot wave is sub divided into small waves known as the fractals. Elliot acknowledged 9 degree of the waves categorizing them in order of their sizes and time length. The cycle starts from the grad super cycle usually found in the weekly and monthly time frame to sub-minuette degree found in the hourly time frame.
This is as below
- Grand super-cycle (many years)
- Supercycle (a few years)
- Cycle ( a year)
- Primary (a few months)
- Intermediate ( months)
- Minor ( weeks)
- Minute ( days )
- Minuette ( hours)
- Sub-minuette ( minutes)
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