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A flat correction differs from a zigzag in
that the subwave sequence is 3-3-5, as shown in Figures 1-29 and 1-30.
Since the first actionary wave, wave A, lacks sufficient downward
force to unfold into a full five waves as it does in a zigzag, the B
wave reaction, not surprisingly, seems to inherit this lack of
countertrend pressure and terminates near the start of wave A. Wave C,
in turn, generally terminates just slightly beyond the end of wave A
rather than significantly beyond as in zigzags.
Figure 1-29 Figure
1-30
In a bear market, the pattern is the
same but inverted, as shown in Figures 1-31 and 1-32.
Figure 1-31 Figure
1-32
Flat corrections usually retrace less
of preceding impulse waves than do zigzags. They participate in
periods involving a strong larger trend and thus virtually always
precede or follow extensions. The more powerful the underlying trend,
the briefer the flat tends to be. Within impulses, fourth waves
frequently sport flats, while second waves do so less commonly.
What might be called "double
flats" do occur. However, Elliott categorized such formations as
"double threes," a term we discuss in Lesson 9.
The word "flat" is used as
a catchall name for any A-B-C correction that subdivides into
a 3-3-5. In Elliott literature, however, three types of 3-3-5
corrections have been identified by differences in their overall
shape. In a regular flat correction, wave B terminates
about at the level of the beginning of wave A, and wave C
terminates a slight bit past the end of wave A, as we have
shown in Figures 1-29 through 1-32. Far more common, however,
is the variety called an expanded flat, which
contains a price extreme beyond that of the preceding impulse
wave. Elliott called this variation an "irregular"
flat, although the word is inappropriate as they are actually
far more common than "regular" flats.
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