In candlestick charts, the W part is usually shown as ABC, but in "line view," by tracking volumes, it is rarely possible to see an internal wave as 1-5. Our expectation is that the Y wave will continue with a sell-off.
Elliott Wave Theory rules for W, X, and Y corrections (double zigzag or other combinations):
W Wave:
It is generally a zigzag (ABC), a corrective structure (e.g., flat or expanded flat), or a more complex formation.
However, the most common is a zigzag (ABC) structure.
X Wave:
The X wave is typically a connecting wave and usually forms a corrective structure (zigzag, flat, or triangle).
The X wave is generally expected to make a smaller retracement compared to W.
Y Wave:
The Y wave also typically forms a zigzag (ABC). However, it may be the second part of a double zigzag or a more complex formation.
While W does not have to consist solely of an ABC structure, the zigzag (ABC) formation is the most common. Other possibilities (flat or more complex corrections) are also valid. It is essential to consider the overall context of the formation and market conditions during Elliott wave analysis.
Elliott Wave Theory rules for W, X, and Y corrections (double zigzag or other combinations):
W Wave:
It is generally a zigzag (ABC), a corrective structure (e.g., flat or expanded flat), or a more complex formation.
However, the most common is a zigzag (ABC) structure.
X Wave:
The X wave is typically a connecting wave and usually forms a corrective structure (zigzag, flat, or triangle).
The X wave is generally expected to make a smaller retracement compared to W.
Y Wave:
The Y wave also typically forms a zigzag (ABC). However, it may be the second part of a double zigzag or a more complex formation.
While W does not have to consist solely of an ABC structure, the zigzag (ABC) formation is the most common. Other possibilities (flat or more complex corrections) are also valid. It is essential to consider the overall context of the formation and market conditions during Elliott wave analysis.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.