ABC Correction

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The 5-wave trends are then corrected and reversed by 3-wave countertrends. Letters are used instead of numbers to track the correction. Check out this example of smokin’ hot 3-wave corrective wave pattern!

The Chrise 5 – 3 wave pattern can look like this:

Waves within a Wave

The other important thing you have to know about the Elliot Wave Theory is that a wave is made of sub-waves?

Do you see how Wave 1 is made up of a smaller 5-wave impulse pattern and Wave 2 is made up of smaller 3-wave corrective pattern? Each wave is always comprised of smaller wave patterns.
Let’s look at a real example.

As you can see, waves aren’t shaped perfectly in real life. You’ll also learn its sometimes difficult to label waves. But the more you stare at charts the better you’ll get. Elliott Wave Theory guru, you can learn more about it at www.elliottwave.com