Elliott Wave #2: ABC Pattern Corrections: Zigzags, Flats and Triangles | Forex

In this video we look at the ABC correction which is part of the Elliot Wave theory. In the previous video we look at the 5-3 wave pattern. The ABC is just like the 503 wave pattern in that it consists of a series of waves which create recognisable patterns. With Elliot Wave Theory there are about 21 ABC patterns but there are 3 popular ones amongst patterns: ABC zig zags, ABC flat formations and ABC correction triangles. 1. Zigzags (5-3-5; includes three variations: single, double, triple) 2. Flats (3-3-5; includes three variations: regular, expanded, running) 3. Triangles (3-3-3-3-3; four types: ascending, descending, contracting, expanding) Zig zag patterns are steep moves in price that are opposed to the dominating trend. Such zig zag patterns can occur twice or three times in a correction. Flat formations are sideways corrective waves. In flat patterns the lengths of the waves are normally equal in length with wave B opposing wave A's move and wave C undoing wave B's move. Triangle formations are essentially corrective patterns that are linked by either converging or diverging trend lines. Triangles are made up of 5 waves that move against the dominating trend in a range trading formation.