So far, we've talked mainly about the impulse waves in the direc­tion of the major trend. Let's turn our attention now to the correc­tive waves. In general, corrective waves are less clearly defined and, as a result, tend to be more difficult to identify and predict. One point that is clearly defined, however, is that corrective waves can never take place in five waves. Corrective waves are threes, never fives (with the exception of triangles). We're going to look at three classifications of corrective waves—zig-zags, flats, and triangles.
Zig-Zags
A zig-zag is a three wave corrective pattern, against the major trend, which breaks down into a 5-3-5 sequence. Figures 13.4 and 13.5 show a bull market zig-zag correction, while a bear market rally is shown in Figures 13.6 and 13.7. Notice that the middle wave B falls short of the beginning of wave A and that wave C moves well beyond the end of wave A.
A less common variation of the zig-zag is the double zig­zag shown in Figure 13.8. This variation sometimes occurs in larg­er corrective patterns. It is in effect two different 5-3-5 zig-zag pat­terns connected by an intervening a-b-c pattern.What distinguishes the flat correction from the zig-zag correction is that the flat follows a 3-3-5 pattern. Notice in Figures 13.10 and 13.12 that the A wave is a 3 instead of a 5. In general, the flat is more of a consolidation than a correction and is considered a sign of strength in a bull market. Figures 13.9-13.12 show examples of normal flats. In a bull market, for example, wave B rallies all the way to the top of wave A, showing greater market strength. The final wave C terminates at or just below the bottom of wave A in contrast to a zig-zag, which moves well under that point.
There are two "irregular" variations of the normal flat cor­rection. Figures 13.13-13.16 show the first type of variation. Notice in the bull market example (Figures 13.13 and 13.14) that the top of wave B exceeds the top of A and that wave C violates the bottom of A.Another variation occurs when wave B reaches the top of A, but wave C fails to reach the bottom of A. Naturally, this last pat­tern denotes greater market strength in a bull market. This varia­tion is shown in Figures 13.17-13.20 for bull and bear markets Elliott's interpretation of the triangle parallels the classical use of the pattern, but with his usual added precision. Remember from Chapter 6 that the triangle is usually a continuation pattern, which is exactly what Elliott said. Elliott's triangle is a sideways consolidation pattern that breaks down into five waves, each wave in turn having three waves of its own. Elliott also classifies four different kinds of triangles—ascending, descending, symmetri­cal, and expanding—all of which were seen in Chapter 6. Figure 13.21 shows the four varieties in both uptrends and downtrends.
Because chart patterns in commodity futures contracts sometimes don't form as fully as they do in the stock market, it is not unusual for triangles in the futures markets to have only three waves instead of five. (Remember, however, that the minimum requirement for a triangle is still four points—two upper and two lower—to allow the drawing of two converging trendlines.) Elliott Wave Theory also holds that the fifth and last wave within the tri­angle sometimes breaks its trendline, giving a false signal, before beginning its "thrust" in the original direction.Elliott's measurement for the fifth and final wave after completion of the triangle is essentially the same as in classical charting—that is, the market is expected to move the distance that matches the widest part of the triangle (its height). There is another point worth noting here concerning the timing of the final top or bottom. According to Prechter, the apex of the trian­gle (the point where the two converging trendlines meet) often marks the timing for the completion of the final fifth wa