Zigzag and Flat patterns

Zigzag and Flat patterns

Unlike motive waves, corrections are more complicated and tricky structures. There're simple and complex correction patterns:

  • Zigzag
  • Flat
  • Double / Triple Zigzag
  • Double / Triple Threes
  • Triangles

The first two (a zigzag and a flat) are simple patterns, which are bricks of complex corrections. In this article, we're going to examine zigzag and flat patterns.

What's a zigzag pattern?

Like most correction patterns, zigzag subdivides into three waves, which are marked as A-B-C.

downward zigzag

The main rules for zigzags:

  • Zigzags subdivides into three waves.
  • Wave A is always an impulse or a leading diagonal.
  • Wave B could take the form of any correction pattern.
  • Wave C is always an impulse or an ending diagonal.
  • Wave B is shorter than wave A.
  • Wave C is longer than wave B.
  • Waves A and C are motive, wave B is corrective.

A flat pattern

Another simple correction is a flat pattern, it also subdivides into three waves and is marked as A-B-C, but the structure is different.

The main rules for flats:

  • Flats consist of three waves.
  • Wave A could be any correction pattern except triangles.
  • Wave B could be any correction pattern, but in most cases, it's a zigzag.
  • Wave C is always an impulse or an ending diagonal.
  • Wave B has a length of more than 90% of wave A.
  • Wave C is usually equal or even longer than wave B.
  • Waves A and C are motive, wave B is corrective.

As you can see from the chart below, there’re three types of the flat pattern depending on the length of waves B and C.

Regular Flat: Wave B is almost equal to wave A (at least 90%), while wave C tends to be equal to wave B.

Expanded Flat: Wave B is longer than wave A and wave C is longer than wave B.

Running Flat: Wave B is longer than wave A, but wave C is shorter than wave B.

Flat trading patterns

Real examples

The chart shows a simple zigzag in wave (ii) with impulses in waves a and c. This is the most common structure of zigzags. Also, pay attention to a leading diagonal, which has formed after wave (ii). The pattern confirmed the ending of the zigzag.

 the most common structure of zigzag pattern

Elliott wave patterns form on all markets, including cryptocurrencies. There’s Ethereum chart below, where we could find three zigzags. The biggest one is wave (ii). As you can see, the wave (a) of (ii) is a leading diagonal pattern. Wave ii (on the right) is a zigzag with the same structure (wave ((A)) is a leading diagonal). Another zigzag is wave b (in the middle of the chart), its wave ((A)) is far longer than wave ((C)). Sometimes such a disproportion happens, so now you know what you can face with.

Upward Zigzag with a Leading Diagonal in wave

It’s also possible to have a zigzag with an ending diagonal in wave C, you can see this case on the next chart. Wave ((a)) here is an impulse, but after wave ((b)) there’s an ending diagonal in wave ((c)). As you already know, an ending diagonal could form in a position of the last wave of a motive wave (wave five of an impulse or wave C of a zigzag).

a zigzag with an ending diagonal

The chart below represents such a rare case when motive waves of a zigzag are formed like a leading and ending diagonals. Contracting diagonals are more common, but we also could face a structure with expanding ones.

a zigzag chart

Sometimes wave C of a zigzag could be fast-moving as you can see on the next chart. There’s a plain and clear structure of the wave (a), but wave (c) consists of only three bars. This usually happens when news or political events influence the price movement.

a fast-moving zigzag

There’s a flat pattern in wave b on the chart below. This is a regular flat because wave ((B)) is about 0.9 of wave’s ((A)) length. However, the wave ((C)) is pretty fast. There’s one more interesting thing. There’re two zigzags in waves ((A)) and ((B)). The first pattern has wave (A) as an expanding leading diagonal, which is quite rare. The next zigzag has a contracting leading diagonal in wave (A) of ((B)), which is more common.

a flat pattern in wave b on the chart

Wave C of a flat pattern could be also an ending diagonal as shown on the next chart. Wave (b) is shorter than wave (a), so it’s a regular flat. However, an ending diagonal in wave (c) finishes below the high of wave (a) that is how running flats ends. As you can see, there’re some variations in each type of flat patterns in the real market.

a flat pattern an ending diagonal

The last chart shows a perfect example of an expanded flat pattern. Wave ((B)) is far longer than wave ((A)) and the ending of wave ((C)) breaks the low of wave ((B)). The subsequent bullish impulse in wave ((1)) confirms that a flat pattern is over.

an expanded flat pattern

Frequently asked questions

  • How to open an FBS account?

    Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. 

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward.  Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • How to activate Level Up Bonus?

    Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.

Latest news

BTC skyrocketed as first crypto exchange goes public!

Coinbase Global Inc., the leading cryptocurrency exchange in the US, will go public on the Nasdaq index on April 14!

Will US inflation push USD further up?

The American inflation rate is announced on Tuesday at 15:30 MT. It’s an important event for traders as it will impact hugely currency pairs with the USD.

USD, gold, Alibaba and more on April 12

In this article, you'll find the latest news and tech analysis of EUR/USD, gold, and GBP/USD!

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera