The Elliott Wave Zigzag pattern is one of the most common corrective structures within Elliott Wave Theory. It is a sharp, directional counter-trend move made up of three waves—A, B, and C—and typically occurs after a strong impulsive phase. Zigzags reflect the market’s temporary reaction against the dominant trend and offer traders opportunities to enter at favourable retracement levels before the trend resumes.

This article explains how to identify, classify, and trade the Elliott Wave Zigzag pattern with clarity and precision.

What Is the Elliott Wave Zigzag Pattern?

A zigzag is a 5-3-5 corrective structure labelled as A-B-C, where:

• Wave A: A 5-wave move in the direction of the correction
• Wave B: A 3-wave counter move (retracement of Wave A)
• Wave C: Another 5-wave move continuing in the direction of Wave A

Zigzags differ from flat corrections by their steep, directional nature and from triangles by their straightforward ABC form. They generally unfold quickly and signal a strong, yet temporary, correction against the main trend.

Zigzag Pattern Rules

To qualify as a zigzag:

• Wave A must be a motive wave (usually 5 waves)
• Wave B is corrective and retraces 38.2% to 61.8% of Wave A
• Wave C is also a motive wave (5 waves), ideally equal to or longer than Wave A
• The pattern typically ends near the 100% to 161.8% Fibonacci extension of Wave A measured from the end of Wave B

Types of Zigzag Patterns

1. Single Zigzag (Most Common)

• A basic A-B-C pattern
• The cleanest and easiest to trade
• Usually appears in Wave 2 or Wave B positions

2. Double Zigzag (W-X-Y)

• Two zigzag structures connected by a Wave X
• Offers a more complex and prolonged correction
• Still maintains a sharp overall direction

3. Triple Zigzag (W-X-Y-X-Z)

• Extremely rare
• Involves three zigzags linked by two X waves
• Indicates prolonged market consolidation before the next impulsive move

How to Identify a Zigzag Pattern

Look for the following signs:

• A steep A wave with five distinct subwaves
• A shallow and corrective B wave (typically 38.2% to 61.8% of A)
• A final C wave that mirrors A in strength and structure
• The overall pattern should tilt against the prevailing trend before continuation

How to Trade the Elliott Wave Zigzag Pattern

Trade Setup: End of Wave C

1. Identify a completed A-B structure and wait for Wave C development
2. Use Fibonacci extension to project likely C wave targets (100% or 161.8% of A)
3. Look for price action confirmation:
   • Pin bar, engulfing candle, or divergence near end of Wave C
   • MACD or RSI divergence often signals the exhaustion of Wave C
4. Entry: After confirmation at the end of Wave C
5. Stop-Loss: Just beyond Wave C’s extremity
6. Take-Profit: Target the origin of Wave A or next structural level

Trade Setup: Riding Wave C

• After confirmation of Wave B (e.g., bounce from 50% retracement), enter early into Wave C
• Target Fibonacci projections of Wave A, such as 100% or 127.2%
• Set stop just below Wave B

Zigzag vs Flat Correction

Feature	Zigzag Correction	Flat Correction
Structure	5-3-5	3-3-5
Direction	Steep and directional	Sideways or mild trend
Wave B	Shallow	Deep (up to 100% or more)
Typical Location	Wave 2, Wave A	Wave B, Wave 4

Zigzags imply a strong reaction within a correction, while flats suggest more balanced consolidation.

Common Mistakes to Avoid

• Miscounting Wave A: Ensure it is a clear five-wave move; otherwise, it may not be a zigzag.
• Assuming every pullback is a zigzag: Look at context—zigzags are usually sharper than other corrections.
• Entering before Wave C completes: Always wait for structural and momentum confirmation.

Conclusion

The Elliott Wave Zigzag pattern is a vital part of any wave analyst’s toolkit. Its sharp, structured form provides clear opportunities to trade corrections within larger trends. Whether used to time counter-trend trades or to anticipate the end of a retracement, understanding and applying zigzag patterns will dramatically improve a trader’s technical precision.

To master zigzags, flats, and other corrective structures within Elliott Wave Theory, join our advanced Trading Courses at Traders MBA and gain the edge needed to trade with structure, clarity, and consistency.