Elliott Wave Cheat Sheets
This is a list of other helpful sources on Elliott Wave Theory
Characteristics of Complex Corrections (Combinations)
- Complex corrections are multiple ABC corrections which are joined by a three-wave price move
identified as wave X. See
When to declare an X wave.l
- Each of the waves in a
complex correction adhere to the
basic Elliott structures
identified for corrections. That
is, Zigzags, Flats, or
- They can occur as the
entire correction, being the
major ABC waves and done, but
they can also occur as a single
wave B in the ABC correction.
This means you could have a
normal A, a double or triple as
a wave B, and a normal C wave.
- A "Double" consists of two
ABC corrections joined by the
X-wave. These are denoted
as A–B–C–X–A–B–C or
abbreviated as simply W–X–Y.
A double presents itself as a 7
wave corrective structure.
- A "Triple" is three
ABC corrections joined by an X
wave between the corrections.
These are denoted as
abbreviated as W–X–Y-X-Z. A
triple presents itself as a 11
wave corrective structure.
- Complex corrections are
still a part of a larger
corrective wave structure and
that structure still must adhere
to the Wave Rules. As a
W4, the complex correction must
still not overlap W1.
However, this does not mean the
expected retracement will be the
same as a common W4 pattern,
like a Zigzag or Flat.
- As a general rule,
when you see a 3 wave
WA, but Wave B does not
retrace to near the
origin of wave A, you
can't call it a flat.
But with only 3 waves in
A, you can't call it a
appropriate label is a
- A triangle may still form
as WB in one or more of the legs
of a complex correction.
Predicting Complex Corrections
As shown in the graphic below, when the A wave of a correction fails to breach the wave 2 -4 trend line (even if the entire 3 wave structure adequately retraces the wave
or even excessively corrects it) you should expect a complex correction.
Note that this chart could represent wave 1 or 3 or 5 of the higher degree,
meaning the 2-4 trend line is in the smaller degree wave or those impulse waves.
If the A Wave is 3 waves, and the B wave does not come within 90% retracement to the impulse pivot, you can't label it as a zigzag and you can't label it as a flat. It is an ongoing complex correction.
- Even though the entire wave of a complex correction
(eg. Wave 4) must adhere to
basic Elliott rules, there is no
predictable retracement. You must
simply wait for the wave to complete
to signify the end of the
- Don't trade them on purpose.
If you find yourself in one, find an
appropriate exit point or be
prepared to wait out the correction
and return to the trend.
- They provide no known predictive
value, although we can predict you
will be miserable if you are holding
through one of them.
- A complex correction will first become obvious when your expected
movement into the next wave of a
correction fails to breakout and
instead pivots and reverses. You can then mark the 3 wave structure as Wave X and expect another
one or two A,B,C corrections to
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