Strategies

Corrective Combination wave pattern of Eliiott

106

In previous articles, we know that in the Elliott wave principle, there are 3 types of large corrective wave patterns including Zigzag, Flat, and Triangle. These are three simple patterns that you may come across in the market. However, in practice, it is not always so easy. When price corrections last too long, they are no longer simple patterns. So investors will have to continue to learn some new concepts. In this article, I will introduce everyone to one of them, a wave pattern called “Corrective Combination”.

What is a Corrective Combination wave pattern?

Corrective Combination consists of 2 or 3 corrective wave patterns combined. These wave patterns are marked as WXY (Double Three) and WXYXZ (Triple Three) if it is more complicated. It starts with a Zigzag (wave W), an X wave next, then a Flat pattern (wave Y), and so on.

The Double Three (D3) pattern is very popular while the Triple Three (T3) pattern is less common.

All correction patterns can combine to form a larger one. Corrective wave rules are applied to the above patterns. The Triangle pattern usually appears at the end of the Combination pattern.

In general, the combined wave pattern occurs mainly in waves 4, B, and X. It rarely occurs in wave A and seldom in wave 2.

Rules of Corrective Combination wave

Wave (W) can follow any corrective wave pattern except Triangle (Contracting, Expanding), Double or Triple patterns.

Wave (X) can follow any corrective wave pattern except Double or Triple patterns. Usually, wave (X) is a Zigzag wave. The minimum retracement of wave (X) is 50% of wave (W). The maximum retracement of wave (X) is 400% of wave (W).

Wave (Y) can follow any corrective pattern except Double or Triple patterns. Wave (Y) must be larger than wave (X) in price unless wave (Y) is a Triangle (Contracting, Expanding).

Finally, wave (Z) can follow any corrective pattern except Double or Triple patterns. However, wave (Z) cannot be a Zigzag if wave (Y) is a Zigzag. Wave (Z) must be larger than the second wave (X) in price.

Double Three wave pattern

The Double Three (D3) pattern is made up of two corrective wave patterns that are not in the same Zigzag pattern connected by a short corrective wave pattern called wave (X).

The Double Three (D3) pattern is represented by waves (W)-(X)-(Y) in which waves (W) and (Y) are not the same Zigzag waveform.

Wave structure of the D3 pattern

Wave (W) is a Zigzag while wave (Y) is Triangle (Contracting, Expanding) or Flat.

The wave structure of the Double Three pattern

Wave (W) is Flat while wave (Y) is Flat, Zigzag, or Triangle (Contracting, Expanding).

Triple Three wave pattern

The Triple Three (T3) pattern is made up of 3 corrective wave patterns that are not in the same Zigzag pattern connected by two short corrections called wave (X).

The T3 pattern is represented by the waves (W)-(X)-(Y)-(X)-(Z) in which waves (W), (Y), and (Z) are not the same Zigzag waveform.

Wave structure of the Triple Three pattern

Wave (W) is Zigzag while wave (Y) is Flat and Wave (Z) is Triangle (Contracting, Expanding)

Wave (W) is Flat while wave (Y) and wave (Z) are Flat, Zigzag, or Triangle (Contracting, Expanding) but wave (Z) is not a Zigzag when wave (Y) is already a Zigzag.