The best way to understand how this pattern works is to study collection of charts with real life examples.
Corrective Structures.
EXPANDED FLAT
Expanded Flat is a flat consolidation that typically happens after a strong rally or decline. What makes it tricky is a corrective wave b up that moves in direction of the main trend and manages to make a new higher high over the preceding impulsive wave. In addition, the final wave c down is so strong so it manages to break under the low of the first leg down in wave a down.
MAIN FEATURES
- The Expanded Flat structure is subdivided into three waves a, b and c
- Waves a down and b up are subdivided into three subwaves
- Wave c down is subdivided into five subwaves
- Wave b up makes a new higher high over the top of preceding rally in an impulsive wave
- The final wave C is a strong impulsive drop pushing price to a new lower low
- Introduction to Section 6 “Corrective Waves”.
- Simple Zig-Zag.
- Correction shaped as a Simple Zig-Zag.
- Regular Flat.
- How to trade a corrective waves shaped as a Regular Flat.
- Running Flat.
- Expanded Flat.
- Correction Shaped as a Triangle.
- How to Trade Triangles.
- Triangle: Key Takeaways.
- Complex Corrective Pattern: Double Three.
- Wave B is the least predictable beast.
- Bonus.Wave B explained.
- Overview of corrective structures: corrections “through time” vs corrections “throw price”.
- Guidance on Alternation Between Corrective Waves