Elliott Wave Flat PatternĪn Elliott Wave flat pattern comes in three forms, regular, expanded and running. The Elliott Wave patterns can be classified into 3 main categories: Flat, Zig-Zag and triangle. In Elliott Wave, the corrective pattern comes in 2 shapes: sharp corrections and sideways corrections. If the initial five-wave movement is pretty much straightforward we can distinguish various types of corrective patterns. Wave 3 travels beyond the end of wave 1 and it’s never the shortest one.Wave 4 never retraces more than 100% of wave 3.Wave 2 never retraces more than 100% of Wave 2.There are simple and straightforward rules that need to be followed in order to confirm the Elliott Wave count:
In Elliott Wave theory, the 8 waves move composed by 5 waves up, followed by 3 corrective waves down is a completed cycle. Since Elliott Wave is fractal in nature, it means that each impulsive wave can be subdivided into 5 waves of smaller degree and each corrective wave can be subdivided into 3 waves of smaller degree. Out of the five wave movement, the wave number 1, 3, and 5 are the impulsive wave within the sequence while wave number 2 and 4 are corrective waves The most common Elliott Wave pattern is represented in the form of the five wave movement in the direction of the trend followed by three corrective waves moving in the opposite direction of the prevailing trend. The Elliott Wave theory basically states that market prices unfold in specific and predictable patterns. The concept behind Elliott Wave is based on price structure and the way markets move and it can be an extremely valuable tool to have in your toolkit. In this article, you’ll learn about the most common Elliott Wave patterns, how it works and how you can use it. Elliott Wave can be one of the most confusing things that you’ll try to learn in your trading career or it can be a very simple to understand and simple to implement the concepts and ideas.
Today, we will explore the various Elliott Wave Patterns.