3 Wave Flat Patterns to Know and Understand📕📗📘In Elliott wave theory, a flat is a figure consisting of three waves, the ends of which are called ABC . This is a corrective pattern going against the trend. This pattern may look like a simple range that spends more time on sideways movement than on a real price increase. The pattern, as a rule, is a shallow pullback of the previous trend and can sometimes be a "flag" of the general flag pattern .
❗️In fact, there are 3 types of flat correction: regular (1), elongated (2) and launched (3). The name of the template by which you identify the correction is not as important as what it implies. In each of the above-mentioned corrections, lateral consolidation is implied, which will eventually resolve as a complete recovery of the model and continuation of the trend until entering the flat model.
📊Trying to define a plane Elliott wave , we are looking for several characteristics.
1.ABC-plane subwaves (regardless of the 3 types above) are divided into 3-3-5.
2.In the flat, look for the second wave or the "B" wave, which rolls back by 78-138% from the "A" wave.
📈The three waves on the plane ( ABC ) are divided into 3-3-5, which means that there are 3 sub-waves in leg "A", 3 sub-waves in leg "B" and 5 in leg "C". underwater waves in it. Since both branches "A" and "B" contain three subwaves each, this illustrates the struggle of the instrument to create a new trend against the previous trend. Consequently, prices eventually fluctuate sideways, eating up more time than prices.
📉When defining corrective patterns, one thing should be kept in mind: there will always be five sub-waves in the "C" legs (the only exception is triangles, since they contain only three sub-waves). Therefore, if you see a 5-wave movement preceded by several 3-wave movements, count in reverse order and see if the flat pattern works.
🚀Flats appear where any three-wave corrective movement can manifest itself. For example, you will find flats in the position of the 2nd or 4th wave of the pulse, in the wave "B" of the zigzag , in the waves W, Y, Z or X of the complex correction, or in the waves "A" of the wave of another flat. However, one corrective structure in which you won't find a flute is triangles. Triangles are constructed from zigzags or other triangles.
🍁As a result, their identification in real time may be difficult. Go to the next higher trend level to see what the larger structure might be, and use wave measurements to anticipate the end point of the pattern. Since they essentially form a range, range trading methods and risk levels are recommended for trading on them.
