Corrective Wave in the Elliot Wave Theory
Corrective Wave In the Elliot Wave Theory , after forming Impulse Wave then there will be a price correction with the formation of 3-Wave or Corrective Wave consisting of 3 (three) ABC-Wave wave patterns. And this correction wave is different from the 2-4 Wave pattern on the Impulse Wave that was discussed earlier.
According to Mister Elliot, there are 21 types of ABC-Wave ranging from the simple to the complex, how do you memorize them? if I think it’s not necessary, just understand the concept.Ok, here are some examples of the intended ABC Wave correction.
In this pattern the price moves very sharply at prices that are contrary to the dominant trend. Wave B is usually shorter than waves A and C. Keep in mind that this pattern occurs 2 (two) to 3 (three) times in the correction phase.
And as has been explained that each wave when viewed in a smaller time frame will see a 5-Wave (Impulse Wave) pattern or fractals.
In this pattern, waves that move to the side and the length of each wave are formed, namely ABC in general is almost the same because the difference in length is usually not too large.
This formation moves against the trend and consists of 5 waves moving sideways. While the slope dimension can go down, narrow or expand.
That is a little picture of Elliot Wave that was delivered by Mister Elliot, hopefully it can help us to fight the passions presented in forex trading.