-Zigzags appear in the construction of many of the Elliott Wave patterns
-Zigzags subdivide as an A-B-C (5-3-5) sequence
-Many times, wave C can be estimated using common ratios and channeling
In Elliott Wave theory, a zigzag is a pattern consisting of 3 waves labeled A-B-C. Most of the time, the pattern will print in the direction against the main trend and is typically a counter trend formation. Zigzags are typically found in the 2nd wave of a 5 wave impulse and have a part in the formation of Elliott wave triangles. Many times, zigzags appear somewhere within a complex correction. There are even a few instances where a zigzag will print in the direction of the larger trend. As a result, the zigzag pattern is an integral price pattern which can be found in several locations within the eight wave Elliott Wave sequence.
Zigzags can print in either the bullish or bearish direction.
The 3 waves of the zigzag (A-B-C) subdivide as a 5-3-5 meaning the ‘A’ leg has 5 sub waves in it, the ‘B’ leg has 3 sub waves in it, and the ‘C’ leg has 5 sub waves in it. As a result of the ‘A’ and ‘C’ legs both containing 5 sub waves each, the impact of the whole zigzag structure is to be a deep retracement and recover a lot of price from the previous trend.
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