As of 11/30/2023   Indus: 35,951 +520.47 +1.5%     Trans: 15,019 +201.97 +1.4%     Utils: 867 +4.29 +0.5%     Nasdaq: 14,226 -32.27 -0.2%     S&P 500: 4,568 +17.22 +0.4%	YTD  +8.5%    +12.1%   -10.4%    +35.9%    +19.0%	Targets    Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023
Chart Pattern Indicator: on 11/17/23

As of 11/30/2023   Indus: 35,951 +520.47 +1.5%     Trans: 15,019 +201.97 +1.4%     Utils: 867 +4.29 +0.5%     Nasdaq: 14,226 -32.27 -0.2%     S&P 500: 4,568 +17.22 +0.4%	YTD  +8.5%    +12.1%   -10.4%    +35.9%    +19.0%
Targets    Overview: 11/29/2023     34,500 or 36,400 by 12/15/2023   14,500 or 15,800 by 12/15/2023   900 or 825 by 12/15/2023   13,700 or 14,450 by 12/15/2023   4,450 or 4,650 by 12/15/2023
Chart Pattern Indicator: on 11/17/23

Bulkowski on the Flat Elliott Wave Pattern

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.

Flat Elliott Wave: Rules

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

• Corrective waves can head up or down.
• The corrective phase aligns against the trend of one higher degree (a counter trend move).
• Wave B terminates near the start of wave A.
• Wave C terminates near the end of wave A, often slightly beyond the end.
• Wave C does not go much beyond the end of A or the wave is a zigzag.
• Look for a flat to precede or follow a wave extension.
• The more powerful the existing trend, the shorter the flat tends to be.
• You tend to see flats in wave four and not wave two of a motive wave.

-- Thomas Bulkowski

See Also

• Here is more information on the simple ABC correction.
• Here is the main resource for Elliott wave information.
• Support and resistance. Learn the various types.
• Market direction. 7 tips to determining.
• Trading cycles help time your entries and exits.
• Trend change detection using a triangle apex.

 

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