Elliott Wave Tutorial on Flat Patterns

Overview

• Focus on flat patterns as part of corrective patterns.
• Other corrective patterns include zigzags and triangles.
• More complex patterns involve multiple corrective patterns joined by an X wave (not covered in this session).

Flat Patterns

• Referred to as a 3-3-5 wave count.
  • A: 3 waves
  • B: 3 waves
  • C: 5 waves

Characteristics

• A is generally equal to C in length.
• Subwave counts for corrective waves use letters (A, B, C) and for impulse waves use numbers (1, 2, 3, 4, 5).
• C wave is impulsive, often confusing traders as a potential new trend.

Types of Flat Patterns

1. Regular Flat

• B ends at the level where A started.
• C is equal to A in length.

2. Running Flat

• B goes higher than where A started.
• C still equals A, aligning with fib extensions.

3. Expanded Flat

• B exceeds the start point of A.
• C extends beyond the end of A.
• B: 1.382 extension of A.
• C: 1.618 extension of A.

Occurrence in Impulse Waves

• Typically appear in wave 4 of impulse waves (1, 2, 3, 4, 5).
• Wave 2 often forms zigzags.
• Wave 4 can form flats or triangles.

Important Considerations

• Flat patterns often appear in wave 4 due to longer time formation.
• Retracement levels: wave 4 typically goes to 38.2% retracement of wave 3.
• Wave C's impulsive nature can mislead traders into thinking a trend reversal is occurring.

Conclusion

• Flat patterns are a critical part of correction waves in Elliott Wave theory.
• Future content will focus on other patterns like triangles and zigzags.