As of 12/02/2024
Indus: 44,782 -128.65 -0.3%
Trans: 17,545 -73.73 -0.4%
Utils: 1,057 -21.90 -2.0%
Nasdaq: 19,404 +185.78 +1.0%
S&P 500: 6,047 +14.77 +0.2%
|
YTD
+18.8%
+10.4%
+19.9%
+29.3%
+26.8%
|
44,000 or 46,000 by 12/15/2024
17,025 or 18,000 by 12/15/2024
1,025 or 1,100 by 12/15/2024
20,000 or 18,500 by 12/15/2024
6,200 or 5,900 by 12/15/2024
|
As of 12/02/2024
Indus: 44,782 -128.65 -0.3%
Trans: 17,545 -73.73 -0.4%
Utils: 1,057 -21.90 -2.0%
Nasdaq: 19,404 +185.78 +1.0%
S&P 500: 6,047 +14.77 +0.2%
|
YTD
+18.8%
+10.4%
+19.9%
+29.3%
+26.8%
| |
44,000 or 46,000 by 12/15/2024
17,025 or 18,000 by 12/15/2024
1,025 or 1,100 by 12/15/2024
20,000 or 18,500 by 12/15/2024
6,200 or 5,900 by 12/15/2024
| ||
This page describes the flat corrective wave of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.
Flats come in three types, regular, expanded, and running. This page concerns itself with the regular, 3-3-5 flat wave. The chart to the right shows a flat, a variety of the ABC corrective wave that follows a motive wave in a bull market.
Wave B stops near the start of wave A, and wave C stops near the end of wave A, buy many times terminating just beyond the end of wave A. Stopping close to the end of wave A distinguishes it from the zigzag wave.
The chart to the right has the same general shape as the preceding chart but with more detail. It shows the subwaves within the 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.
This chart shows the same 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 near where wave A starts and wave C ends near or slightly beyond where wave A ends.
A flat tends to occur when the overall trend is strong, so it almost always precedes or follows an extension. The more powerful the overall trend, the quicker the flat tends to occur. A flat 3-3-5 wave corrects less of the prior motive wave than does a zigzag pattern. Within a motive wave, the fourth wave tends to house a flat but wave two rarely does.
The three wave corrective phase has rules that govern its shape. They are listed here.
-- Thomas Bulkowski
Support this site! Clicking any of the books (below) takes you to
Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."
My Stock Market Books
|
My Novels
|
Signs you have a drinking problem: Sincerely believe alcohol to be the elusive 5th food group.