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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Bulkowski's Zigzag Wave

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 03/23/2017
20,657 -4.72 0.0%
8,936 -51.04 -0.6%
703 -1.87 -0.3%
5,818 -3.95 -0.1%
2,346 -2.49 -0.1%
YTD
4.5%
-1.2%
6.5%
8.1%
4.8%
Tom's Targets    Overview: 03/14/2017
21,250 or 20,600 by 04/15/2017
9,500 or 8,700 by 04/15/2017
675 or 715 by 04/01/2017
5,950 or 5,650 by 04/15/2017
2,425 or 2,325 by 04/15/2017
Mutt Losers: None YTD
Mutt Winners: None YTD

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

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 zigzag wave in a bull market. 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 zigzag in a bear market. 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

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Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Don't drink and drive. You might hit a bump and spill your drink.