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Although different in
that their angle of trend is sharper than the sideways trend of
combinations, double and triple zigzags can be characterized as
non-horizontal combinations, as Elliott seemed to suggest in Nature's
Law. However, double and triple threes are different from
double and triple zigzags, not only in their angle but in their
goal. In a double or triple zigzag, the first zigzag is rarely
large enough to constitute an adequate price correction of the
preceding wave. The doubling or tripling of the initial form is
typically necessary to create an adequately sized price
retracement. In a combination, however, the first simple pattern
often constitutes an adequate price correction. The doubling or
tripling appears to occur mainly to extend the duration of
the corrective process after price targets have been
substantially met. Sometimes additional time is needed to reach
a channel line or achieve a stronger kinship with the other
correction in an impulse wave. As the consolidation continues,
the attendant psychology and fundamentals extend their trends
accordingly.
As this section makes clear,
there is a qualitative difference between the number series 3
+ 4 + 4 + 4, etc., and the series 5 + 4 + 4 + 4, etc.
Notice that while impulse waves have a total count of 5, with
extensions leading to 9, 13 or 17 waves, and so on, corrective
waves have a count of 3, with combinations leading to 7 or 11
waves, and so on. Triangles appear to be an exception, although
they can be counted as one would a triple three, totaling 11
waves. Thus, if an internal count is unclear, the analyst can
sometimes reach a reasonable conclusion merely by counting
waves. A count of 9, 13 or 17 with few overlaps, for instance,
is likely motive, while a count of 7, 11 or 15 with numerous
overlaps is likely corrective. The main exceptions are diagonal
triangles of both types, which are hybrids of motive and
corrective forces.
Orthodox Tops and Bottoms
Sometimes a pattern's end differs
from the associated price extreme. In such cases, the end of the
pattern is called the "orthodox" top or bottom in
order to differentiate it from the actual price high or low that
occurs intra-pattern. For example, in Figure 1-11, the end of
wave 5 is the orthodox top despite the fact that wave 3
registered a higher price. In Figure 1-12, the
end of wave 5 is the orthodox bottom. In Figures 1-33 and 1-34,
the starting point of wave A is the orthodox top of the
preceding bull market despite the higher high of wave B. In
Figure 1-47, the end of wave Y is the orthodox bottom of the
bear market even though the price low occurs at the end of wave
W.
This concept is important
primarily because a successful analysis always depends upon a
proper labeling of the patterns. Assuming falsely that a
particular price extreme is the correct starting point for wave
labeling can throw analysis off for some time, while being aware
of the requirements of wave form will keep you on track.
Further, when applying the forecasting concepts that will be
introduced in Lessons 20 through 25, the length and duration of
a wave are typically determined by measuring from and projecting
orthodox ending points.
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