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Corrective Structures.
EXPANDED FLAT

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

The best way to understand how this pattern works is to study collection of charts with real life examples.

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