Here’s an Elliott wave pattern you’ll see again and again.
An Expanded Flat, labeled A-B-C, is a corrective Elliott wave pattern. It moves in the opposite direction of the trend of one larger degree and subdivides 3-3-5. This chart shows the idealized pattern in a bull market.
To a seasoned Elliottician, this pattern jumps off the page and tells you what’s likely next: a five-wave impulse to new extremes in the direction of the larger trend.
Here’s a practical example:
In the April 2024 issue of Global Market Perspective, EWI Chief Asian and Emerging Markets Analyst Mark Galasiewski spotted a completed expanded flat pattern in Xiaomi Corp (highlighted in red on the chart below). He alerted his subscribers to the bullish setup:
“We think that the company’s shares completed a flat correction from their 2018 IPO to a low in October 2022 and since then are tracing out a series of first and second waves in a new impulsive advance.“
Result:
Xiaomi Corp. QUADRUPLED in a year!
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