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Written and copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved.
This page describes the zigzag pattern of the Elliott wave principle, how price moves not in a straight line but in
a series of rises and retracements.
The figure to the right shows two zigzag waves. The first on the left, in blue, is an ABC correction of the prior motive wave in a bull market. It shows
how wave B ends well below the start of wave A.
The right figure shows the 5-3-5 subwaves that make up the zigzag. Think of each subwave
as a line segment in the illustration.
The chart on the right shows the zigzag pattern in a bear market. This is just an inversion of the prior chart and is sometimes called an inverted zigzag.
Wave B falls well short of the start of wave A, just as in the prior chart. The chart shows the 5-3-5 subwaves using numbers 1
through 5.
Zigzag Wave Rules
The zigzag has rules that govern its shape. They are listed here.
- The zigzag is an ABC correction of the motive wave.
- The pattern follows the 5-3-5 subwave configuration.
- Subwave B falls well short of the start of subwave A.
-- Thomas Bulkowski
Copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved. Don't drink and drive. You might hit a bump and spill your drink.
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