Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises

An Expanded Flat Corrective Pattern

The key to early identification of expanded flat corrective patterns is the middle leg. Wave ‘B’ is a three-wave swing in a correction that has already begun, but may not have been detected in the first leg. However, once the second leg labors out a choppy mess or a recognizable corrective pattern, you know exactly what is ahead for that market. In Figure 3.5 wave ‘B’ is a zigzag pattern. This time you have to adjust your eye to a time horizon that will give you lots of detail because it is an intraday chart. Wave ‘B’ breaks out above the old Gold market high (‘start’). Once wave ‘B’ was fully developed the market failed. I was able to pick this one out early in a real-time scenario because the middle leg within ...