Elliott Waves - Complex Corrections
00:23 - UTILITY
Complex corrections happen during extended moves.
There are Double and Triple combinations.
They are labelled W-X-Y and W-X-Y-X-Z.
01:08 - IMPLEMENTATION
Double combinations are a correction followed by an X Wave into another correction.
Triple combinations are a correction followed by an X Wave into another correction followed by another X Wave into a final correction.
Double and triple ZigZags channel very well.
Each Wave of a W-X-Y-X-Z is a 3 Wave structure.
Double and triple combinations can never start with a Triangle, but they can have every other variation (listed below).
ZigZag X ZigZag, ZigZag X Flat, Flat X Triangle, Flat X Flat, ZigZag X ZigZag X Triangle, ZigZag X Flat X Triangle, etc.
The X Wave is itself another 3 Wave Corrective pattern.
03:02 - EXAMPLE 1
The Double Flat is one of many combinations of complex corrections. It is two corrective Waves joined by an X Wave (also corrective).
04:05 - EXAMPLE 2
The Triple correction, W-X-Y-X-Z, is another example of the many different combinations of complex corrections. Three corrective waves joined by 2 X Waves (also corrective).
With the white line, we can visualize the W-X-Y-X-Z complex correction.
05:10 - EXAMPLE 3
Here we are shown some examples of incorrect ways to count.
They are incorrect because all of the Waves are too similar in price and time.
There is no extension in any Wave and the price channels too well.
One of the Waves in an impulse should extend.
There must be alternation between Wave 2 and Wave 4.
06:49 We are shown another example of an incorrect count.
It is incorrect because all of the waves are also too similar in price and time.
Many would count this as an Impulse or maybe a double ZigZag.
The correct count is the one that actually ends in a triangle.
08:30 - EXAMPLE 4
Here we see an Ending Diagonal Wave:
Waves 1 and 4 overlap.
Wave 1 is normally the longest.
Wave 5 cannot be larger than Wave 3.
Each Wave subdivides into an ABC or WXY.
This can also be seen as a rising wedge.
It is possible to get an Ending Diagonal Wave inside of Wave 5 or Wave C.
Rather than the standard, 5-3-5-3-5, it is a Terminal Impulse, ending in 3-3-3-3-3, where each wave is corrective price action.
08:30 - EXAMPLE 5
Here we see a Starting Diagonal Wave:
Waves 1 and 4 overlap.
Wave 1 is normally the longest.
Starting Diagonal Wave inside of Wave 1 or Wave A of a ZigZag.
Starting Impulse of 5-3-5-3-5.
It can also be 3-3-3-3-3.
11:24 - TIPS FOR ZIGZAGS
If a ZigZag channels perfectly, it is likely only an X Wave and a more complex correction is coming.
The X Wave should not go higher than the CC from the start of A to the end of C.
12:45 - EXAMPLE 6
We see the complex correction WXY channeling perfectly. Thus, we can expect another X to give a W-X-Y-X-Z.
As this Double ZigZag ends at the trendline perfectly again, it is likely going to have another X Wave before continuing its complex correction, W-X-Y-X-Z.
This ends in a Triple Combination correction, where the final Z Wave could be a ZigZag.
12:45 - EXAMPLE 7
Incorrect count shown.
Many would consider this as an Impulse with an Extended 3rd Wave, which would be incorrect. An Impulse Wave should not channel so perfectly.
You always want to look for an Extension in Waves 1, 3 or 5.
You also want to see alternation between Waves 2 and 4.
15:37 - TIPS & TRICKS
*Channeling is a key concept of Corrective Waves. If something channels very well, it is generally Corrective price action.
*Complex corrections are simply 2 normal correction patterns joined by X Waves. (X Waves are also a 3 Wave corrective pattern)
*After a Starting or Ending Diagonal price should quickly and strongly reverse.