GALAUSDTIdea 2
if this is
Truncated zigzag 🛬
or Nomal ZZ 🛬🛬
Elongated ZZ 🛬🛬🛬
Corrective Wave: ZIGZAG
Rules:
Zigzags consist of 3 waves (A, B and C)
Wave A must be an impulse or leading diagonal
Wave C must be an impulse or ending diagonal
Only one diagonal is allowed (A or C) per zigzag , i.e. it must have at least one impulse (A or C)
Wave B can be any corrective pattern ( zigzag , flat, triangle, complex combination)
Wave B must not retrace Wave A by more than 100%
Guidelines:
Wave C should normally always go beyond A. Wave C can in principle be truncated (i.e. not go beyond wave A) but it is extremely rare.
Zigzags can become extended into double or triple zigzags, in which case they are labeled wxy (double zigzag ) and wxyz (triple zigzag ). W, Y, and Z will each subdivide into their own ABC zigzag , while the X wave/s can be any corrective pattern (they take on the same role as B waves in a simple zigzag ). Extended zigzags usually form when a simple zigzag appears too small in terms of time and magnitude in order to be proportional to the swing, which it is correcting.
Zigzags can take many shapes and sizes. One of the features that can help distinguish an A-B-C zigzag from a potential 1-2-3 impulse is that wave A and B will be much more overlapping in general and A waves tend to finish quicker than wave 1 in terms of time and magnitude. Zigzags should often show a very gently sloping channel, whereas 1-2-3 are typically much more steep
Elliott Wave Theory Fibonacci Retracement and Extension Guidelines:
Waves A and C of a correction tend towards equality (same size 100%). The next most common ratios are C = 161.8% x A or C = 61.8% x A
Wave B usually retraces between 38% – 79% of wave A
If wave B is a triangle, there is a higher chance that wave C may only reach the 61.8% extension target.
If wave B is a running triangle, it will typically only retrace 10 – 40% of wave A
If wave B is any other sideways correction, it will typically 38% – 50% of wave A
if wave B is a zigzag , it will typically retrace 50% – 79% of wave A
