# 4.50 ABC Correction - Elliott Corrective Waves

We read about the impulse move and how in its 5th wave things became ripe for a correction.

The correction comes in the form of a move in the opposite direction to the impulse move – a counter-trend that is made up of 3 waves. To make things different, the Elliott corrective waves are numbered using alphabets. Look at the 5-3 wave pattern here:

Compared to the impulse moves the corrective waves are difficult to identify and master and a major cause of traders losing a lot of the money made on the impulse moves.

These ABC corrective moves have been classified by Elliott into 21 different kinds but seeing as you are not about to do a PhD in this stuff, we’ll take you through the three most basic formations. These really mix-and-match up into all the others. Isn’t that convenient?

Let’s check some of the main patterns of the corrective waves. Please note that we will be using examples of an uptrend to explain but the opposite will stand true for the downtrends.

## The Zigzags (5-3-5 correction)

A zigzag corrective wave brings a substantial correction in the ongoing trend and has following characteristics:

The individual waves themselves have a 5-3 wave pattern.

The basic zigzag shown above features 3 waves:

• (A): Itself made up of 5 descending waves
• (B): Itself made up of 3 ascending waves
• (C): Itself made up of 5 descending waves

What it means is the wave “B” is always the shortest out of the three.

Zigzags are quite steep compared to the preceding impulse wave. Usually, the wave B is smaller compared to the waves A and C.

Sometimes the corrective pattern is made up of more than one zigzag pattern linked one after the other. The picture above shows a double zigzag Elliott corrective way as well.

## The Flat corrective waves

Flat corrective pattern does not bring any decent correction in the prices but acts like a pause where see a sideways pattern. The summit of wave B is almost at the same level as the start of wave A and Wave C is about the same level and right across from wave A. A flat correction can be broken down into a 3-3-5 wave pattern as shown above.

## Examples of Zigzag and Flat Corrective Waves

The above Forex chart of GBP/USD shows the examples of zigzag and flat corrective waves during Elliott wave patterns. See, how the zigzag correction brings a very strong correction which went as deep as half of the height of the impulse wave, while the degree of correction brought by the flat pattern was moderate.

## Triangle corrective wave patterns

Triangular corrective patterns are generally bound between sloping trend lines and made up of a 5-wave, a-b-c-d-e sequence. In the picture above we can see the different kinds of triangle corrective patterns.

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