The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

THE HAnDBook of TECHniCAl AnAlysis

18.4 Corrective Waves

There are four types of corrective waves, namely the:

1. Zigzag


2. Flat


3. Triangle


4. Any combination of zigzag, flat, or triangle

As a rule, a zigzag subdivides into three waves and unfolds as impulsive five‐, a

corrective three‐, and another impulsive five‐wave formation (5‐3‐5). Wave A subdi-

vides into either an impulsive wave or leading diagonal triangle, while wave C sub-

divides into either an impulsive wave or ending diagonal triangle. Wave B subdivides

into a zigzag, flat, triangle, or any combination of the three corrective waves. In a

zigzag, wave B must not extend beyond the beginning of wave A. In most cases, wave

C extends beyond the end of wave A in a zigzag corrective pattern. See Figure 18.7.

figure 18.6 Leading and Ending Expanding Diagonal Triangles.

figure 18.7 Zigzag Corrective Pattern.