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Futures: Learn To Recognize Complex Corrections
What IS a complex correction, in Elliott wave terms?

By Vadim Pokhlebkin
Tue, 08 Apr 2008 16:30:00 ET
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Here’s a quick pop quiz for you. Name these two types of Elliott wave corrective formations:


The first one is a zigzag – otherwise known as a "5-3-5" (because waves A and C have 5 internal waves, while wave B only 3). The second chart shows a Flat correction – also known as a "3-3-5."

These are the most basic and common corrective patterns in Elliott wave analysis, and Elliotticians will recognize them almost immediately. Now, what kind of correction do you see in this market?
If you are stumped, don’t feel bad. This is not a zigzag or flat – it's complex correction, usually labeled on a chart as W-X-Y.
These formations are not nearly as common as the simple corrections above. But you will certainly need to identify them from time to time because they do occur – as the one in the chart above recently did in one particular futures market.
This complex correction got identified by our own Daily Futures Junctures editor Jeffrey Kennedy, who discusses it in depth in tonight’s (April 8) issue:
A corrective wave pattern that is far less common than a Zigzag, Flat or Expanded Flat is the Complex Correction, or W-X-Y. The short-hand for this pattern is 3-3-3. Now, this doesn't mean that wave C is comprised of three waves, it simply means that two Flat corrections are joined together by an X wave.
The question is, where does this correction end? And what will follow it?
Jeffrey answers both of these questions in the April 8 Daily Futures Junctures and shows you exact price points where this market will either prove him right or wrong. To find out more, sign up for a 30-day, risk-free subscription to our Futures Junctures Services – please scroll below for details.

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