When we deal with a pullback in wave ( iv ) we have two main options: “flat” structure or “simple zig-zag” structure.
Very often teh “flat” structure is also called “3-3-5” corrective structure:
“3” stands for three waves down check red a-b-c;
“3” stands for three waves up check black a-b-c;
“5” stands for the final subwave c should always have an impulsive structure i-ii-iii-iv-v.
This is how a model of that corrective structure looks like:
This is how ES can follow the path proposed by the “flat” corrective structure:
Another alternative corrective structure is “Simple Zig Zag”. It is often called “5-3-5” structure.
In this case the first leg down in subwave ( a ) of ( iv ) has an “impulsive” structure.
It is subdivided into five waves labelled as i, ii, iii, iv and v.
When the first leg down has five micro waves we call that structure the “Simple Zig Zag”.
That type of a structure is normally the deepest and fastest form of corrective wave.
Because both legs have “impulsive” structure, they are strong drops.
And, in contrast, the corrective subwave ( b ) up would not go much higher than 50-61.8% retracement of wave ( a ) down.
It can be as shallow as 33.3% or 41.4%.
This is how ES can follow the path proposed by the “simple zig-zag” corrective structure:
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