Elliott Wave Theory ] Complex Corrections [Double Combo,Triple Combo Pattern, WXY -3wave, WXYXZ-5wave]

 

Double Combo Pattern

• Structure: W-X-Y (3 waves)
• Appearance Locations:
  • In an impulse wave, during the 2nd or 4th wave
  • In a zigzag correction, as the B wave
  • As the A wave in a flat correction
• Wave Composition:
  • W Wave: Zigzag, double zigzag, triple zigzag, or flat
  • X Wave: Any form of corrective wave
  • Y Wave: Zigzag, double/triple zigzag, flat, or triangle
• Fibonacci Ratios:
  • X wave: 50–88.7% of the W wave
  • Y wave: 61.8–127.2% of the W wave (should not exceed 161.8%)

Triple Combo Pattern

• Structure: W-X-Y-X-Z (5 waves)
• Appearance Locations:
  • Similarly, it can appear in the 2nd or 4th wave.
• Wave Composition:
  • W Wave: Zigzag or flat
  • X Wave: Zigzag, double zigzag, triple zigzag, or flat
  • Y Wave: Zigzag or flat
  • Next X Wave: Zigzag, double zigzag, triple zigzag, or flat
  • Z Wave: Zigzag, flat, or triangle
• Fibonacci Ratios:
  • X wave: 50–88.7% of the W wave
  • Y wave: 61.8–127.2% of the W wave (should not exceed 161.8%)
  • Z wave: 61.8–127.2% of the Y wave (should not exceed 161.8%)
   

 

Examples of Complex Corrections

Complex corrective patterns occur when market corrections become intricate, combining various forms of corrective waves. For example, a stock might show the following pattern after a strong rally:

1. Double Combo: After a strong rise, if the stock experiences a zigzag correction in the W wave, followed by a complex correction in the X wave, it might form another zigzag pattern in the Y wave.
2. Triple Combo: As the market undergoes corrections, multiple zigzag and flat corrections might combine to form a pattern. For instance, the first W wave could be a zigzag, followed by a flat correction in the X wave, then the second Y wave appears as another zigzag, leading to subsequent X and Z waves.

These complex corrective patterns play a crucial role in identifying price direction. Applying various forms and Fibonacci ratios is essential for determining accurate entry and exit points.