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Corrective Wave

The document provides a checklist for identifying the structure of a corrective wave in a bull market. It lists the typical sub-wave patterns seen in waves A, B, C, D, and E of a corrective structure. It then provides a series of yes/no questions to help analyze whether the wave counts and patterns conform to expectations or suggest the structure may be different than initially thought.

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Moses Arg
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1K views

Corrective Wave

The document provides a checklist for identifying the structure of a corrective wave in a bull market. It lists the typical sub-wave patterns seen in waves A, B, C, D, and E of a corrective structure. It then provides a series of yes/no questions to help analyze whether the wave counts and patterns conform to expectations or suggest the structure may be different than initially thought.

Uploaded by

Moses Arg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Corrective Wave Checklist (Bull Market Example)

Wave 5 Wave A Wave B Wave C Wave D Wave E

5 Sub-Waves: ABC, Zigzag


3 or 5 Sub-Waves 3 Sub-Waves 3 Sub-Waves: Triangle or 3Sub- Waves 3 Sub-Waves
Complex

Are there 5 3 Wave Down 3 Waves Up 3 Waves Down 3 Waves Up 3 Waves Down
Subdivisions Probable developing
N In Wave 5 Y Probable Triangle
On course for a B Waves should Triangle Probable triangle
correction, but not always be 3 wave (ABCDE) (E= .618 of C)
confirmed. A Waves structures. Probable If C=.618 of A, Probable (D=.618 of B) Check against the BD trend
Is Wave 3 the complex sideways Triandle Check against the AC line
shortest impulse may be 3 or 5 Sub-
Waves. correction developing. trend line.
Y Wave? N

5 Waves Up 5 Waves Down: 5 Waves Down


Does Wave 5 Not OK. This is Wave C Tests or
Extend above wave Probably Wave A of
N Y 5 Waves Down probably not part of a Exceeds Wave A Zigzag Correction.
3? correction.
Probable Zigzag Possibly a W5 Probable Completion of
Is it likely a Fifth extension ABC Zigzag
wave Failure?
N Y Check Rule of
3 Waves Up 5 Waves Down: Alternation Guideline
Does Wave 5 have a Probable Zigzag Wave C For potential structure of
Fibonacci is .618 or less of Wave A W4.
relationship with
wave 1-3? 5 Waves Up Probable Developing
(projection, or Triangle or other more
external Wrong Wave Count. complex correction When W4 is Complete,
N retracement) Y
B Waves should be 3 Draw parallel Channel
sub-waves 3 Waves Down (W2-W4 From W3)
For Potential W5
Re-Assess Either Part of Developing Objectives.
Wave Structure. B Wave may Exceed C Wave
the W5 high (irregular Or Wave count is wrong
ABC). W4 Can not enter the
If B wave is more than price zone of wave 1.
Ready for a the 1.272 of the A
correction wave, the wave count If it does, consider that a
is probably wrong. W3 extension is
underway and this is W2
of 3.
If not, the 5 wave,
impulse count is probably
wrong.

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