As of 07/14/2020
  Indus: 26,643 +556.79 +2.1%  
  Trans: 9,465 +159.29 +1.7%  
  Utils: 800 +8.67 +1.1%  
  Nasdaq: 10,489 +97.74 +0.9%  
  S&P 500: 3,198 +42.30 +1.3%  
YTD
-6.6%  
-13.2%  
-9.0%  
 +16.9%  
-1.0%  
  Targets    Overview: 07/14/2020  
  Up arrow27,800 or 24,500 by 08/01/2020
  Up arrow10,050 or 8,600 by 08/01/2020
  Up arrow840 or 740 by 08/01/2020
  Up arrow10,800 or 10,000 by 08/01/2020
  Up arrow3,325 or 3,000 by 08/01/2020
CPI (updated daily): Arrows on 6/29/20
As of 07/14/2020
  Indus: 26,643 +556.79 +2.1%  
  Trans: 9,465 +159.29 +1.7%  
  Utils: 800 +8.67 +1.1%  
  Nasdaq: 10,489 +97.74 +0.9%  
  S&P 500: 3,198 +42.30 +1.3%  
YTD
-6.6%  
-13.2%  
-9.0%  
 +16.9%  
-1.0%  
  Targets    Overview: 07/14/2020  
  Up arrow27,800 or 24,500 by 08/01/2020
  Up arrow10,050 or 8,600 by 08/01/2020
  Up arrow840 or 740 by 08/01/2020
  Up arrow10,800 or 10,000 by 08/01/2020
  Up arrow3,325 or 3,000 by 08/01/2020
CPI (updated daily): Arrows on 6/29/20

Bulkowski on the Running Flat Elliott Wave Pattern

 

This page describes the running flat corrective wave of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

 

The running flat wave correction, bull market and bear market variety. Flats come in three types, regular, expanded, and running. This page concerns itself with the running, 3-3-5 flat wave. The chart to the right shows a running flat in a bull market (left figure) and bear market (right figure), a variety of the ABC corrective wave that follows a motive wave.

In a running flat, wave B stops beyond the start of wave A, and wave C falls short of stopping near the end of wave A. The difference between an expanded flat and a running flat is where wave C ends. In an expanded flat, wave C terminates beyond the end of wave A. The appearance of a running flat is considered rare.

The running flat wave correction in a bull market. The chart to the right has the same general shape as the preceding chart (bull market) but with more detail. It shows the subwaves within the running flat correction. The red numbers 1-5 describe the line segments or subwaves within the ABC correction. Wave A is composed of three subwaves as is wave B, but wave C has five subwaves. That's where the flat 3-3-5 term comes from. A flat is a term used for any ABC correction that has 3-3-5 subwaves. A running flat (or any flat for that matter) must have the 3-3-5 configuration.

 

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The running flat wave correction in a bear market. This chart shows the same running flat 3-3-5 corrective wave but in a bear market. Waves A and B are threes and wave C is a five. Wave B ends beyond where wave A starts but wave C terminates before the end of wave A.

Since a running flat is so rare, check for the 3-3-5 subwave configuration. If a different combination appears, such as 3-3-3, then you may be looking at the start of a triangle. If wave B shows five subwaves instead of three, then it may be the motive phase of a wave of one higher degree.

Running Flat Elliott Wave Rules

The three wave corrective phase has rules that govern its shape. They are listed here.

-- Thomas Bulkowski

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See Also

 

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My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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