Corrective Waves

Corrective Waves
Corrective Waves are much harder to identify than impulse or motive waves and are
much harder to label in real time. There is one important rule for corrections: they
never form five waves. Only impulse waves form a five wave pattern. However, one
or more of the subordinate waves of a corrective wave can consist of a five wave
pattern, though this is not a rule as we will soon see when discussing the different
types of corrections.
1. Guidelines for Corrective Waves
There are two guidelines that apply to corrective waves:
Alteration
The first is the guideline of alternation that states: if Wave 2 is a sharp correction,
Wave 4 is likely to be a protracted, sideways correction; and if Wave 2 is a
protracted, sideways correction, Wave 4 is likely to be sharp. More often than not,
Wave 2 is a sharp correction and Wave 4 is a sideways correction.
Equality
The second is the guideline of equality that states: Wave A and Wave C tend to be
more or less equal in length. This guideline can be used to determine where Wave C
is likely to end.
2. Types of Corrections
There are a total of four basic wave patterns for corrections: zigzag corrections, flat
corrections, triangles, and combination corrections.
Zigzag Corrections
A Zigzag Correction
Zigzag corrections consist of a three wave pattern that is labeled A-B-C. The
subordinate waves of a lesser degree that make up a zigzag correction form a 5-3-5
wave count. In these corrections, waves A and C are impulse waves and Wave B is
a corrective wave of a lesser degree. A zigzag correction can extend to form double
zigzags or triple zigzags with each zigzag being separated by an intervening wave
that has three subordinate waves and is labeled X. You can often anticipate a double
zigzag when Wave C of a zigzag appears to fall short of its normal target, though this
is not a hard rule.
Flat Corrections
A Flat Correction
Flat corrections also consist of a three wave pattern that is labeled A-B-C but its
subordinate waves form a 3-3-5 wave count. A characteristic of these corrections is
that they are weak corrections with its Wave C often failing to exceed the length of
Wave A. Flat corrections often follow a strong impulse wave and occur more often as
the fourth rather than as a second wave of an impulse wave. Flat corrections have
three subcategories: regular flat corrections; expanded flat corrections and running
flat corrections.
Regular Flat Corrections

In a regular flat correction Wave B tends to be a 100% retracement of Wave A and
Wave C tends to be slightly more than a 100% retracement of Wave B, ending
slightly further than Wave A.
Expanded Flat Corrections

Expanded flat corrections have a megaphone shape with Wave B moving beyond
the start of Wave A and Wave C moving beyond the start of Wave B.
Running Flat Corrections
Running flat corrections are very rare and are similar to expanded flat corrections
with the exception that Wave C fails to move beyond the start of Wave B and also
fails reach that end of Wave A.
Triangle Corrections
A Triangle Correction
Triangle corrections consist of five waves labeled A-B-C-D-E with the subordinate
waves forming a 3-3-3-3-3 wave pattern. They reflect a momentary balance of forces
between bulls and bears. In an ideal triangle correction, each successive wave will
fall short of a 100% retracement of the previous wave. However, it is not uncommon
to have wave B exceed the start of Wave A. Sometimes an expanded triangle is
formed when each successive wave is more than a 100% retracement of the
previous wave. The triangle is formed by connecting the end point of waves A and C
and the ends points of waves B and D. Triangles always occur as the fourth wave of
an impulse wave and is usually followed by a short, swift fifth wave that travels the
approximate distance of the widest part of the triangle.
Combination Corrections
A Combination Correction consisting of a Zigzag,

an Intervening Three, and a Flat
Combination corrections are usually horizontal corrections that form combinations of

simpler three wave corrections, such as zigzag corrections, flat corrections and
triangle corrections. However, a combination correction can end in a triangle
correction but it cannot start with one. Each of the simpler corrective patterns that
make up a combination correction is separated by an intervening wave that has
three subordinate waves as these are corrections in a correction. Combination
corrections occur more often in the fourth wave.

Corrective Waves

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Corrective Waves

1. Guidelines for Corrective Waves

There are two guidelines that apply to corrective waves:

Regular Flat Corrections

Expanded Flat Corrections

A Combination Correction consisting of a Zigzag,

Combination corrections are usually horizontal corrections that form combinations of

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