Best Cash Back Forex Rebates : Learn How to Trade Forex: Foreign Exchange (FX) Currency Trading – ABC Correction
The 5-wave trends are then corrected and reversed by 3-wave countertrends. Letters are used instead of numbers to track the correction. Check out this example of a smokin’ hot corrective 3-wave pattern!
Types of Corrective Wave Patterns
According to Elliott, there are 21 corrective ABC patterns ranging from simple to complex.
“Uh 21? I can’t memorize all of that! The basics of the Elliott Wave Theory are already mind-blowing!”
Take it easy, young padawan. The great thing about Elliott Wave is you don’t have to be above the legal drinking age to trade it! You don’t have to get a fake ID or memorize all 21 types of corrective ABC patterns because they are just made up of three very simple easy-to-understand formations.
Let’s take a look at these three formations. The examples below apply to uptrends, but you can just invert them if you’re dealing with a downtrend.
The Zig-Zag Formation
The Flat Formation
The Triangle Formation
Drop by our forums if you want to see the bullish and bearish versions of these