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Home Β» Corrective Waves in Elliott Wave Theory: ABC Patterns Explained
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Corrective Waves in Elliott Wave Theory: ABC Patterns Explained

By saadJune 5, 2025No Comments2 Mins Read2 Views
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In Elliott Wave Theory, after a 5-wave impulsive move, markets typically enter a 3-wave corrective phase. These corrections move against the prevailing trend and are labeled A, B, and C instead of numbers.

πŸ”„ What Is a Corrective Wave?

Corrective waves are countertrend moves that follow the dominant 5-wave trend. Whether you’re in a bull or bear market, these 3-wave patterns help identify when a retracement or reversal is likely to occur.

Corrective waves consist of:

  • Wave A: Initial countertrend move.
  • Wave B: Partial retracement.
  • Wave C: Continuation of the countertrend.

πŸ“Š Example:

  • In an uptrend, the ABC correction would look like a pullback.
  • In a downtrend, it’s simply flipped in the opposite direction.

🧩 Types of Corrective Wave Patterns

Elliott identified 21 variations of ABC corrective waves, but don’t worry β€” they all stem from just three core formations:

1️⃣ Zig-Zag Correction

A Zig-Zag is a steep correction that moves sharply against the main trend.

  • Structure: 5-3-5
  • Wave B is usually the shortest.
  • Can repeat as double or triple zig-zags.
  • Found in both uptrends and downtrends.

πŸ“ Tip: Each wave (A and C) can be broken down into smaller 5-wave structures.


2️⃣ Flat Correction

A Flat is a sideways correction where all waves are typically similar in length.

  • Structure: 3-3-5
  • Wave B often retraces all or more of Wave A.
  • Wave C ends near the start of Wave A.
  • Common in consolidation phases.

3️⃣ Triangle Correction

Triangles are formed by 5 waves (A-B-C-D-E) that move sideways, bounded by converging or diverging trendlines.

  • Types:
    • Symmetrical
    • Ascending
    • Descending
    • Expanding
  • Usually found in Wave 4 or B of a larger pattern.

βœ… Key Takeaways

  • Corrective waves counter the main trend and help identify potential entry/exit points.
  • The three most common corrective formations are: Zig-Zags, Flats, and Triangles.
  • These patterns are universal β€” applicable to forex, stocks, crypto, or commodities.

πŸ“Œ Mastering these patterns gives traders an edge in anticipating market reversals and trend continuations.

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