Zigzag corrective wave pattern of Elliott

Zigzag corrective wave pattern of Elliott

To complete a most basic Elliott wave, in addition to the impulse wave, there is also a corrective wave. In this article, I will talk about the Zigzag wave pattern. It is simply a pause, not the end of the main trend. The correction can be in the form of a wave, or a cumulative sideways price movement, with a weaker character and slower than the impulse. These are the periods when the market rests after a strong move.

Corrective wave pattern

A corrective wave in an uptrend consists of small bearish price segments, creating lower highs, or can move sideways depending on the market. The corrective wave must consist of UP AND DOWN CANDLE MIXES WITH SMALL CANDLE BODY. This is an important feature to distinguish from impulse waves.

A corrective wave pattern is a pattern consisting of 3 waves against the trend with the master wave pattern (Impulse).

To make corrective waves easier to distinguish from the impulse, they are marked with the letters A-B-C, W-X-Y-Z (impulses are numbered 1-5)

Elliott corrective wave pattern
Elliott corrective wave pattern

Corrective waves are divided into 3 main patterns:

  • Zigzag wave pattern
  • Flat wave pattern
  • Triangle wave pattern

Zigzag corrective wave pattern

The Zigzag (ZZ) pattern has a 3-wave structure marked A-B-C, generally moving against the main trend. The ZigZag pattern usually occurs in waves A, X, or wave 2. It also often occurs in wave B which is part of a Flat pattern, part of a triangle pattern, and sometimes in wave 4. This is one of the most popular Elliott corrective wave patterns.

Zigzag corrective wave pattern
Zigzag corrective wave pattern

A Single ZigZag pattern consists of 3 waves. The Double ZigZag pattern consists of 7 waves separated by an X wave in the middle. The Triple ZigZag pattern consists of 11 waves separated by two X waves in the middle.

Wave pattern rules

Wave A must follow an Impulse (IM) or a Leading Diagonal (LD) pattern.

Wave A must follow an Impulse or Leading Diagonal pattern
Wave A must follow an Impulse or Leading Diagonal pattern

Wave B can only be a corrective wave pattern and must be shorter than wave A by price distance.

Wave B in a Zigzag pattern
Wave B in a Zigzag pattern

Wave C must follow an Impulse or Ending Diagonal (ED) pattern.

Wave C must follow Impulse or Ending Diagonal pattern
Wave C must follow Impulse or Ending Diagonal pattern

Wave C can be an Ending Diagonal if wave A is a Leading Diagonal.

Wave C is an Ending Diagonal pattern
Wave C is an Ending Diagonal pattern

Variations of the Zigzag wave pattern

Zigzag Running pattern

With this pattern, the end of wave C does not cross the end of wave A

Zigzag Running pattern
Zigzag Running pattern

Elongated Zigzag pattern

With this pattern, wave C is very long compared to wave A, possibly as long as 2,618 times wave A.

Elongated Zigzag pattern
Elongated Zigzag pattern

Double Zigzag and Triple Zigzag

Popular variations of the Zigzag pattern are the Double Zigzag (DZ) pattern and the Triple Zigzag (TZ) pattern.

In essence, they are all corrective patterns. The TZ pattern rarely occurs. All these patterns form the Zigzag family.

Double Zigzag pattern

The DZ pattern is made up of two Zigzag patterns connected by a relatively short correction called wave (X).

The DZ pattern is represented by the waves (W)-(X)-(Y) where the waves (W), (Y) follow the ZZ pattern.

Double Zigzag pattern
Double Zigzag pattern

Triple Zigzag pattern

The TZ pattern is made up of 3 ZZ patterns connected by 2 relatively short corrective wave patterns called wave (X).

The TZ pattern is represented by the waves (W)-(X)-(Y)-(X)-(Z) where the waves (W), (Y), (Z) follow the ZZ pattern.

Triple Zigzag pattern
Triple Zigzag pattern

Double Zigzag and Triple Zigzag pattern rules

  • Waves (W), (Y), and (Z) must follow the ZZ pattern.
  • Wave (X) can be any corrective pattern except the Expanding Triangle (ET).
  • Wave (X) must be shorter than wave (W) in terms of the price range.
  • Wave (Y) must be equal to or longer than wave (X) in the price range.
  • The second (X) wave must be shorter than the (Y) wave in the price range.
  • Wave (Z) must be equal to or longer than the second (X) in the price range.
Double Zigzag and Triple Zigzag corrective wave pattern rule
Double Zigzag and Triple Zigzag corrective wave pattern rule

Note: Double Zigzag and Triple Zigzag wave patterns contain Zigzag patterns so Zigzag Running and Zigzag Elongated variations are also included in these wave patterns.

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Zigzag corrective wave pattern of Elliott
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