Elliott Waves – As Easy as A-B-C!

We have a tendency as investors/humans to overcomplicate things. Elliott waves are no exception.

While it takes time to truly master the intricacies of Elliott, you can learn to spot Elliott wave patterns right away. 

Let’s start with the two basic modes of Elliott waves, impulse (or motive) and corrective waves. Impulse waves go in the direction of the market trend, while corrective waves go in the opposite direction. 

See. Simple. 

There are three types of corrective wave patterns: zigzag, flat or a triangle. 

Today, we’ll zero in on the corrective pattern with a funny name: the zigzag. 

Here is a description from the benchmark for Elliott waves, Elliott Wave Principle:

A single zigzag in a bear market is a simple three-wave rising pattern labeled A-B-C.

And here’s a real-market zigzag example in silver from our March 28 Short Term Update.

“Silver’s rally from $24.44 on March 16 to $25.89 on March 24 is in three waves. Three waves unfold counter to the next larger-degree of trend, so the “three up” means that silver’s larger trend is down.”

Your Next Step: Learn how to spot patterns in your charts with FREE access to Elliott Wave Principle.