Below we have depicted all Elliott Wave patterns
that are allowed under a very strict interpretation of
the Elliott Wave Principle. Elliott detected most of these patterns,
except for the Diagonal 2 pattern. The WXY and WXYXZ pattern
have not been defined as such by Elliott, but he already had
discovered these sort of combinations.
In our Automatic analysis engine we use the WXY and WXYXZ
also for Double and Triple Zigzags. This is a much more consistent
way of labeling these patterns, since now the ABC waves in
waves W and Y are sub waves and an unfitting Wave X has been
eliminated.
Because of this the Automatic analysis no longer has to search
for more than five waves. Using the old definition of for
example a Triple Zigzag, the search was for eleven waves,
apart from inconsistencies this would have slowed down the
analysis considerably.
I. Trends ::
top ::
a. Impulse
Pattern
Description
Impulses are always composed of five waves, labeled 1,2,3,4,5.
Waves 1, 3 and 5 are themselves each impulsive patterns and
are approximately equal in length. Waves 2 and 4 on the contrary
are always corrective patterns.
Rules and guidelines
The most important rules and guidelines are:
 Wave 2 cannot be longer in price than wave 1, and it
must not go beyond the origin of wave 1.
 Wave 3 is never the shortest when compared to waves
1 and 5.
 Wave 4 cannot overlap wave 1, except in diagonal triangles
and sometimes in wave 1 or A waves, but never in a third
wave. In most cases there should not be an overlap between
wave 1 and A.
 As a guideline the third wave shows the greatest momentum,
except when the fifth is the extended wave.
 Wave 5 must exceed the end of wave 3.
 As a guideline the internal wave structure should show
alternation, which means different kind of corrective
structures in wave 2 and 4.
In which wave
Impulse patterns occur in waves 1, 3, 5 and in waves A and
C of a correction( this correction could be a wave 2, 4 or
a wave B, D, E or wave X).
Internal structure
It is composed of five waves. The internal structure of these
waves is 53535. Note that the mentioned 3s are corrective
waves, which should be composed of 5 waves in a corrective
triangle.
b. Extension
Pattern
Description
By definition an extension occurs in an impulsive wave, where
waves 1, 3 or 5 can be extended, being much longer than the
other waves. It is quite common that one of these waves will
extend, which is normally the third wave. The two other waves
then tend to equal each other.
In our pattern definitions we call it an Extension1 if the
first wave extends, an Extension3 if the 3^{rd} wave
extends and an Extension5 if the 5^{th} wave extends.
Rules and guidelines
The most important rules and guidelines concerning an extended
wave are:
 It is composed of 5, 9, 13 or 17 waves.
 Wave 2 cannot be longer in price length than wave 1,
so it should not go beyond the origin of wave 1.
 Wave 3 is never the shortest when compared to waves
1 and 5.
 Wave 4 cannot overlap wave 1.
 Wave 5 exceeds the end of wave 3.
 The extended wave normally shows the highest acceleration.
In which wave
Extensions occur in waves 1, 3, 5, and in A and C waves,
when compared to each other.
Internal structure
As a minimum it is composed of 9 waves, though 13 or 17 waves
could occur. So the minimal internal structure of the 9 waves
is 535353535. Note that the 3s mentioned are corrective
waves, which could be composed of 5 waves in the case of a
corrective triangle.
c. Diagonal triangle type 1
Pattern
Description
Diagonals are sort of impulsive patterns, which normally
occur in terminal waves like a fifth or a C wave. Don?t confuse
them with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees,
but they do occur often in lower wave degrees on intraday
charts. Usually Diagonal triangles are followed by a violent
change in market direction.
Rules and guidelines
The most important rules and guidelines are:
 It is composed of 5 waves.
 Waves 4 and 1 do overlap.
 Wave 4 can?t go beyond the origin of wave 3.
 Wave 3) cannot be the shortest wave.
 Internally all waves of the diagonal have a corrective
wave structure.
 Wave 1 is the longest wave and wave 5 the shortest.
 The channel lines of Diagonals must converge.
 As a guideline the internal wave structure should show
alternation, which means different kind of corrective
structures.
In which wave
Diagonal triangles type 1 occur in waves 5, C and sometimes
in wave 1.
Internal structure
The internal structure of the five waves is 33333.
d. Diagonal triangle type 2
Pattern
Description
Diagonal type 2 is a sort of impulsive pattern, which normally
occurs in the first or A wave. The main difference with the
Diagonal Triangle type 1 is the fact that waves 1, 3 and
5 have an internal structure of five waves instead
of three. Experience shows it can also occur in a wave 5 or
C, though the Elliott Wave Principle does not allow this.
Don?t confuse this with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees,
but they do occur often in lower wave degrees in intra day
charts. These Diagonal triangles are not followed by a violent
change in market direction, because it is not the end of a
trend, except when it occurs in a fifth or a C wave.
Rules and guidelines
The most important rules and guidelines are:
 It is composed of 5 waves.
 Wave 4 and 1 do overlap.
 Wave 4 can?t go beyond the origin of wave 3.
 Wave 3) cannot be the shortest wave.
 Internally waves 1, 3 and 5 have an impulsive wave structure.
 Wave 1 is the longest wave and wave 5 the shortest.
 As a guideline the internal wave structure should show
alternation, which means that wave 2 and 4 show a different
kind of corrective structure.
In which wave
Diagonal triangles type 2 occur in waves 1 and A.
Internal structure
The five waves of the diagonal type 2 show an internal structure
of 53535.
e. Failure or Truncated 5th
Pattern
Description
A failure is an impulsive pattern in which the fifth wave
does not exceed the third wave. Fifth waves, which travel
only slightly beyond the top of wave 3, can also be classified
as a kind of failure. It indicates that the trend is weak
and that the market will show acceleration in the opposite
direction.
Rules and guidelines
The most important rules and guidelines are:
 Wave 2 cannot be longer in price distance than wave
1, so it should not go beyond the origin of wave 1.
 Wave 3 is never the shortest when compared to waves
1 and 5.
 Wave 4 cannot overlap wave 1, except for diagonal triangles
and sometimes in waves 1 or A, but never in a third wave.
There should not be overlap between wave 1 and A.
 Wave 5 fails to go beyond the end of wave 3.
 As a guideline the third wave shows the greatest momentum.
 As a guideline the internal wave structure should show
alternation, which means different kinds of corrective
structures.
In which wave
A failure can only occur in a fifth wave or a C wave, but
normally not in the fifth wave of wave 3.
Internal structure
It must be composed of five waves.
II. Corrections ::
top ::
a. Zigzag
Pattern
Description
A Zigzag is the most common corrective structure, which starts
a sharp reversal. Often it looks like an impulsive wave, because
of the acceleration it shows. A zigzag can extend itself into
a double or triple zigzag, although this is not very common,
because it lacks alternation (the same two patterns follow
each other). Notice that the zigzag can only be the first
part of a corrective structure.
Rules and guidelines
 It is composed of 3 waves.
 Waves A and C are impulses, wave B is corrective.
 The B wave retraces no more then 61.8% of A.
 The C wave must go beyond the end of A.
 The C wave normally is at least equal to A.
In which wave
Most of the time it happens in A, X or 2. Also quite common
in B waves as a part of a Flat, (part of) Triangles and sometimes
in 4.
Internal structure
A single Zigzag is composed of 3 waves, a double of 7 waves
separated by an X wave in the middle, a triple of 11 waves
separated by two X waves (see pictures below). The internal
structure of the 3 waves is 535 in a single Zigzag, 5353535
in a double.
Example of a Double Zigzag
As you have noticed we have a more modern representation
of the Double Zigzag using the labels WXY instead of ABCXABC.
This is more consistent, since this way 2 zigzags of lower
degree get connected to each other by waves of higher degree.
On top if that, our automatic analysis needed such a consistent
method of labeling to reach maximum performance. Instead of
labeling 7 waves (ABCXABC), the Automatic analysis needs to
label only 3 waves (WXY). According to the same method a Triple
Zigzag is represented by WXYXZ instead of ABCXABCXABC. This
way the number of waves was reduced to five instead of eleven.
b. Flat
Pattern
Description
Flats are very common forms of corrective patterns, which
generally show a sideways direction. Waves A and B of the
Flat are both corrective patterns. Wave C on the contrary
is an impulsive pattern. Normally wave C will not go beyond
the end of wave A.
Rules and guidelines
 It is composed of 3 waves.
 Wave C is an impulse, wave A and B are corrective.
 Wave B retraces more then 61.8% of A.
 Wave B often shows a complete retracement to the end
of the previous impulse wave.
 Wave C shouldn?t go beyond the end of A.
 Normally wave C is at least equal to A.
In which wave
It occurs mostly in B waves, though also quite common in
4 and 2.
Internal structure
As mentioned before a Flat consists of 3 waves. The internal
structure of these waves is 335. Both waves A and B normally
are Zigzags.
c. Expanded Flat or Irregular Flat
Pattern
Description
This is a common special type of Flat. Here the B wave is
extended and goes beyond the (orthodox) end of the previous
impulsive wave. The strength of the B wave shows that the
market wants to go in the direction of B. Often a strong acceleration
will take place, which starts a third wave or an extended
fifth. If the C wave is much longer then A, the strength will
be less.
Rules and guidelines
 It is composed of 3 waves.
 Wave C is an impulse, waves A and B are corrective.
 Wave B retraces beyond the end of the previous impulse,
which is the start of wave A. The C wave normally is much
longer then A.
In which wave
This corrective pattern can happen in 2, 4, B and X. If it
happens in 2 and C is relatively short, normally an acceleration
in the third will take place.
Internal structure
It is composed of five waves, which have an internal structure
of 335.
d. Triangles
Contracting Triangle:
Pattern
Description
A triangle is a corrective pattern, which can contract or
expand. Furthermore it can ascend or descend. It is composed
of five waves, each of them has a corrective nature.
Rules and guidelines
 It is composed of 5 waves.
 Wave 4 and 1 do overlap.
 Wave 4 can?t go beyond the origin of wave 3.
 Wave 3 cannot be the shortest wave.
 Internally all waves of the diagonal have a corrective
wave structure.
 In a contracting Triangle, wave 1 is the longest wave
and wave 5 the shortest. In an expanding Triangle, wave
1 is the shortest and wave 5 the longest.
 Triangles normally have a wedged shape, which follows
from the previous.
 As a guideline the internal wave structure should show
alternation.
In which wave
Triangles occur only in waves B, X and 4. Never in wave 2
or A.
Internal structure
It is composed of five waves, of which the internal structure
is 33333.
Expanding Triangle:
Ascending Triangle:
This is a triangle, which slopes upwards. This pattern has
been implemented in the Modern Rules.
Descending Triangle:
This is a triangle, which slopes downwards. This pattern
has been implemented in the Modern Rules.
Running Triangle:
This is a triangle where the B wave exceeds the origin of
wave A.
e. WXY or Combination
Many kinds of combinations are possible. Below a rather complex
example has been depicted.
Pattern
Description
A Combination combines several types of corrections. These
corrections are labeled as WXY and WXYXZ if it is even more
complex. It starts for example with a Zigzag (wave W), then
an intermediate X wave, then a Flat (wave Y) and so on. A
socalled double or triple three is also a Combination, but
this pattern combines Flats separated by X waves.
Rules and guidelines
 All types of corrective patterns can combine to form
a bigger corrective pattern.
 The rules and guidelines, as mentioned for other corrective
patterns apply.
 A triangle in a Combination should normally occur at
the end.
 Corrective patterns in a Combination normally show alternation.
In which wave
Generally a Combination occurs mostly in B, X and 4, it is
less common in A and rare in 2.
Internal structure
For example a Zigzag, followed by a Flat, followed by a Triangle
has the following internal structure:
535(Zigzag)535(X)335(Flat)33333(Triangle).
f. Running Flat
Pattern
Description
The Running correction is a rare special form of a failure.
This pattern is a kind of Flat, with an elongated B wave and
a very small C wave. According to theory wave C should be
so short that it doesn?t get to the price territory of wave
A. ELWAVE does not except a C wave that fails to reach
the price territory of wave A.
Instead of a running correction this could in theory be an
extension in an impulsive wave, where the wave has subdivided
in two (or more) 1,2 combinations. If the B is a clear three
wave, then it is a Running correction, otherwise an extension.
In practice there will not be any difference in market direction:
in both scenarios the market will explode in the direction
of the B wave, therefore ELWAVE prefers to label it
as an extension. For the sake of correctness we have included
this pattern, it has been implemented in the Classic Rules,
not in the Modern Rules.
Rules and guidelines
 The B wave must be composed of three waves.
 The C wave must be composed of five waves.
 Wave C must be very short and normally will not reach
the price territory of A.
 Wave C must not retrace more than 100% of wave B but
more than 60% of wave A.
In which wave
Most of the time it should occur in wave 2 or B.
Internal structure
It is a threewave structure. The internal structure is
335.
X wave
Description
An X wave is an intermediate wave in a more complex correction.
This wave is always corrective and can take many forms like
a Zigzag, Double Zigzag, Flat, Expanded Flat, combination
and a triangle.
