ZigZag Rules:
A ZigZag is a three wave structure labeled A-B-C, generally moving counter to the larger trend. It is the most common three wave Elliott pattern. Zigzags are corrective in nature.
Wave A must be an Impulse or a Leading Diagonal.
Wave B can only be a corrective pattern.
Wave B must be shorter than Wave A by price. All internal points are considered.
Wave B must be at least 20% of A by price.
Although there is no minimum time constraint for Wave B, it must not exceed 10 times the time taken by Wave A.
Wave C must be an Impulse or an Ending Diagonal.
If Wave A is a Leading Diagonal, then Wave C must not be an Ending Diagonal.
Wave C must be longer than 90% of Wave B by price.
Wave C must be less than 5 times Wave B by price.
It is not allowable to have both Wave 5 of A a failure (Wave 5 is shorter then Wave 4) and Wave 5 of C a failure.
Wave C must be no more than 10 times either Wave A or B in price or time.
ZigZag Guidelines:
It is unusual for a Wave within Wave A to have a greater gross price movement than Wave A.
Wave B should end nowhere near beginning of Wave A
Wave B should retrace at least 30% of Wave A.
Wave B is most likely to retrace Wave A by about 38.2%.
Wave B is next most likely to retrace Wave A by about 50%.
Wave B is next most likely to retrace Wave A by about 61.8%.
The largest Wave in B is usually less than the gross price movement of Wave A.
The time taken by Wave B is usually between 61.8% and 161.8% of the time taken by Wave A.
Wave C is most likely to have a similar price length to Wave A.
The next most likely price lengths for Wave C are 61.8% and 161% of Wave A
The next most likely price length for Wave C is 61.8% of Wave A beyond the end of Wave A.
If Wave C is much longer than 161.8% of A, then the pattern is more probably the beginning of an Impulse than a Zigzag.
If Wave C is complete, and has a greater slope than Wave A, expect the Zigzag to extend to an Impulse.
Although Wave C should always be greater in price to Wave B, in rare cases Wave C can be up to 10% shorter than Wave B.
The largest Wave within C by price is usually less than the gross price movement of Wave A.
The time taken by Wave C is usually between 61.8% of Wave A and 161.8% of the shortest Wave of A and B.
A ZigZag is a three wave structure labeled A-B-C, generally moving counter to the larger trend. It is the most common three wave Elliott pattern. Zigzags are corrective in nature.
Wave A must be an Impulse or a Leading Diagonal.
Wave B can only be a corrective pattern.
Wave B must be shorter than Wave A by price. All internal points are considered.
Wave B must be at least 20% of A by price.
Although there is no minimum time constraint for Wave B, it must not exceed 10 times the time taken by Wave A.
Wave C must be an Impulse or an Ending Diagonal.
If Wave A is a Leading Diagonal, then Wave C must not be an Ending Diagonal.
Wave C must be longer than 90% of Wave B by price.
Wave C must be less than 5 times Wave B by price.
It is not allowable to have both Wave 5 of A a failure (Wave 5 is shorter then Wave 4) and Wave 5 of C a failure.
Wave C must be no more than 10 times either Wave A or B in price or time.
ZigZag Guidelines:
It is unusual for a Wave within Wave A to have a greater gross price movement than Wave A.
Wave B should end nowhere near beginning of Wave A
Wave B should retrace at least 30% of Wave A.
Wave B is most likely to retrace Wave A by about 38.2%.
Wave B is next most likely to retrace Wave A by about 50%.
Wave B is next most likely to retrace Wave A by about 61.8%.
The largest Wave in B is usually less than the gross price movement of Wave A.
The time taken by Wave B is usually between 61.8% and 161.8% of the time taken by Wave A.
Wave C is most likely to have a similar price length to Wave A.
The next most likely price lengths for Wave C are 61.8% and 161% of Wave A
The next most likely price length for Wave C is 61.8% of Wave A beyond the end of Wave A.
If Wave C is much longer than 161.8% of A, then the pattern is more probably the beginning of an Impulse than a Zigzag.
If Wave C is complete, and has a greater slope than Wave A, expect the Zigzag to extend to an Impulse.
Although Wave C should always be greater in price to Wave B, in rare cases Wave C can be up to 10% shorter than Wave B.
The largest Wave within C by price is usually less than the gross price movement of Wave A.
The time taken by Wave C is usually between 61.8% of Wave A and 161.8% of the shortest Wave of A and B.
Note
One probable count out of many !Note
Heading straight to our target, we need to see 5 waves here !
I do more in depth studies of stocks on my twitter account. Hope you would enjoy it there as you are enjoying it here.
****** Past performance is no guarantee of future results***
twitter.com/samitrading1
****** Past performance is no guarantee of future results***
twitter.com/samitrading1
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
I do more in depth studies of stocks on my twitter account. Hope you would enjoy it there as you are enjoying it here.
****** Past performance is no guarantee of future results***
twitter.com/samitrading1
****** Past performance is no guarantee of future results***
twitter.com/samitrading1
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.