Elliott Wave Corrective Patterns
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Elliott Wave Corrective Patterns

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Elliott Wave Corrective Patterns

Elliott Wave Corrective Patterns represent the market’s natural pauses or retracements that occur against the primary trend. These patterns typically follow five-wave impulses and form part of larger market cycles. While impulse waves move the trend forward, corrective waves provide opportunities to prepare for the next major price move by identifying key reversal zones, consolidation areas, or trend exhaustion.

This guide breaks down the main corrective patterns in Elliott Wave Theory—Zigzags, Flats, and Triangles—plus complex combinations, including how to identify and trade them.

What Are Elliott Wave Corrective Patterns?

Corrective patterns unfold in three waves (A-B-C) or combinations of such patterns. They are seen in:

  • Wave 2 of an impulse
  • Wave 4 of an impulse
  • Wave B of a correction
  • Wave X linking complex corrections

Unlike impulses, corrective waves lack strong momentum and often move sideways or against the larger trend. Understanding these structures helps traders avoid poor entries and better time their trades.

1. Zigzag Correction (5-3-5 Structure)

Zigzags are sharp, deep retracements consisting of:

  • Wave A: A five-wave move
  • Wave B: A three-wave counter move (retracing 38–61.8% of A)
  • Wave C: Another five-wave move, often equal to or longer than A

Key Traits:

  • Steep and directional
  • Common in Wave 2 or A
  • Wave C often targets 100% to 161.8% of Wave A

Trading Tip: Enter at the end of Wave C with reversal confirmation, targeting the trend continuation.

2. Flat Correction (3-3-5 Structure)

Flat corrections are sideways and occur when Wave B retraces much of Wave A.

Subtypes:

  • Regular Flat: B ≈ A, C ≈ A
  • Expanded Flat: B exceeds A, C extends beyond A (often 1.618 × A)
  • Running Flat: B exceeds A, but C fails to reach A’s end

Common In: Wave 4 or B
Key Traits:

  • Consolidative structure
  • Price appears range-bound
  • Wave C is often the trading trigger

Trading Tip: Wait for exhaustion at the end of Wave C (especially in expanded flats) for high-probability entries.

3. Triangle (3-3-3-3-3 Structure)

Triangles represent prolonged consolidation and occur before the final move in the trend.

Types:

  • Contracting Triangle: Most common; converging support and resistance
  • Expanding Triangle: Rare; diverging structure
  • Ascending/Descending: With horizontal and sloped lines
  • Running Triangle: Wave B is the longest

Appears In: Wave 4 or B
Key Traits:

  • Five-wave structure labelled A-B-C-D-E
  • Often followed by a strong breakout in the trend’s direction

Trading Tip: Trade the breakout of Wave E with stop-loss just inside the triangle.

4. Complex Corrections

When a simple A-B-C does not fully correct the move, the market forms a compound corrective structure.

Types:

  • Double Zigzag (W-X-Y): Two zigzags connected by an X wave
  • Triple Zigzag (W-X-Y-X-Z): Three zigzags with two X waves
  • Combination (Zigzag + Flat + Triangle)

Key Traits:

  • Appear in prolonged sideways markets
  • Harder to spot and require patience
  • X waves serve as connectors

Trading Tip: Avoid trading inside complex corrections unless well defined. Focus on breakouts and end-of-structure trades.

How to Identify Corrective Patterns

  • Wave Count: Corrections are mostly three waves or multiples of three
  • Price Action: Choppy, slow, overlapping moves
  • Volume: Lower compared to impulse waves
  • Context: Corrections follow strong directional moves and prepare for the next impulse

Corrective vs Impulsive Waves

FeatureCorrective PatternsImpulse Waves
DirectionAgainst main trendWith the main trend
Structure3-wave or combinations5-wave
MomentumWeakStrong
ComplexityHighLower
Common PlacementWave 2, 4, B, XWave 1, 3, 5, A, C

Common Mistakes to Avoid

  • Mislabeling waves: Never force patterns—let the market reveal the structure
  • Trading mid-correction: Corrections are unpredictable—wait for clarity
  • Neglecting wave alternation: Wave 2 is usually a sharp zigzag, Wave 4 is typically a flat or triangle

Conclusion

Elliott Wave corrective patterns are fundamental for understanding market retracements and sideways movements. Recognising when the market is correcting helps traders stay patient, avoid false entries, and prepare for high-probability trend continuations.

To develop full confidence in identifying and trading every Elliott Wave structure—including complex corrections—enrol in our expert-led Trading Courses at Traders MBA and elevate your technical trading to a professional level.

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