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)
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.
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 B can only be a corrective wave pattern and must be shorter than wave A by price distance.
Wave C must follow an Impulse or Ending Diagonal (ED) pattern.
Wave C can be an Ending Diagonal if wave A is a Leading Diagonal.
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
Elongated Zigzag pattern
With this pattern, wave C is very long compared to wave A, possibly as long as 2,618 times wave A.
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.
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.
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.
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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