In Elliott Wave Theory, flat corrections are a type of corrective wave pattern observed within financial markets. They occur when the market experiences a temporary pause or retracement against the prevailing trend before resuming its original direction.
Flat corrections are labeled as "3-3-5" patterns, which means they consist of three main waves: Wave A, Wave B, and Wave C.
Wave A: The first wave (Wave A) is a sharp and strong move against the trend. It represents the initial decline or retracement in the price.
Wave B: The second wave (Wave B) is a counter-trend movement, which retraces a portion of the decline from Wave A. It often appears as a corrective rally, but it is usually smaller in magnitude compared to Wave A.
Wave C: The third and most critical wave (Wave C) is another move against the trend, similar to Wave A. However, the key distinction is that Wave C subdivides into five smaller waves: Wave 1, Wave 2, Wave 3, Wave 4, and Wave 5.
Wave 1, 3, and 5: These are impulse waves that move in the direction of the larger trend.
Wave 2 and 4: These are corrective waves that retrace a portion of the previous impulse waves.
The completion of the 3-3-5 flat correction signifies the end of the retracement, and the market is expected to resume its primary trend afterward.
Flat corrections are labeled as "3-3-5" patterns, which means they consist of three main waves: Wave A, Wave B, and Wave C.
Wave A: The first wave (Wave A) is a sharp and strong move against the trend. It represents the initial decline or retracement in the price.
Wave B: The second wave (Wave B) is a counter-trend movement, which retraces a portion of the decline from Wave A. It often appears as a corrective rally, but it is usually smaller in magnitude compared to Wave A.
Wave C: The third and most critical wave (Wave C) is another move against the trend, similar to Wave A. However, the key distinction is that Wave C subdivides into five smaller waves: Wave 1, Wave 2, Wave 3, Wave 4, and Wave 5.
Wave 1, 3, and 5: These are impulse waves that move in the direction of the larger trend.
Wave 2 and 4: These are corrective waves that retrace a portion of the previous impulse waves.
The completion of the 3-3-5 flat correction signifies the end of the retracement, and the market is expected to resume its primary trend afterward.
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This would be the bearish perspective. Bullish count would be that we just printed a zig zag where my yellow 1 is, and now we could be continuing up.
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Lower time frame bearish count
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PerspectivesNota
I would suggest that the triangle count is also on the table. I did label the first blue impulse but at the same time the move also smells like a 3 wave. Bit of a hybrid wave. Just putting it out thereNota
Bullish perspective if this continues as presented.
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Called as well. Blue (5) better not stay for a long time under the channel that is drawn . We want to see a quick wick that is bought up if we want the further developement to higher prices.
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Leaning bullish again.
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Better hold this zone if we want bullish continuation. This current structure has everthing a zig zag needs.
5/3/5 structure
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Called...
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Presenting the original bearish idea.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.