As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

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.

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 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.

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.

• Corrective waves can trend up or down.
• The corrective phase aligns against the trend of one higher degree (a counter trend move).
• Wave B terminates beyond the start of wave A.
• Wave C terminates before the end of wave A.
• A running flat is rare so look for the 3-3-5 subwave combination.

-- Thomas Bulkowski

See Also

• Read more about the 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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