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Elliott Wave Theory Patterns – Types and Explanation

Elliott Wave Pattern represents the structure of a wave with Definite rules and Fibonacci Calculations of internal wavesEvery wave of Elliott Wave Theory has its own definite patterns which help us to identify if a waves is completed or not. It shows the position of price within the wave.

Elliott Wave Theory is nothing without Elliott Wave Patterns. Elliott wave cycle consists of 8 waves but every wave has its own Elliott Wave Pattern. We must have picture of every pattern in our mind to identify waves accurately and to confirm if waves you are marking are correct or not.

It also gives an idea about general trend and indicates where a particular wave is going to complete. It gives the idea of trend reversal and same is explained in earlier chapter

Types of Elliott Wave Patterns

There are 3 types of Elliott Wave Theory patterns which further subdivided into 7 main Elliott Wave Patterns. 3 types of patterns are: –

1. Impulse
2. Diagonal Triangles
3. Corrective Patterns

Impulse Wave Pattern of Elliott Wave Theory

Impulse is an independent patterns and is consist of five lower degree waves marked as 12345 or i,ii,iii,iv,v or any other number format.

It is a basic pattern of Elliott Wave Theory or we can say that Impulse is base of Elliott Wave Theory. The Impulsive wave in Elliott Wave Cycle is identified as an Impulse which includes all other patterns.

Impulse waves are in the direction of main trend and generally faster and larger than corrective waves.

Diagonal Triangle Pattern of Elliott Wave Theory

Diagonal Triangles are  complex patterns of Elliott Wave Theory and is the part of main proceeding trend like Impulse.

Diagonal Triangles are consists of five inners waves but its inner wave 4 overlaps inner wave 2 and it forms a Triangle or Wedge pattern. That’s why it is called as Diagonal Triangle.

There are 02 Diagonal Triangle Patterns

2. Ending Diagonal Triangle

Rules and calculations of both these diagonal triangle patterns are exactly same but their inner wave structure is different.

Corrective Wave Pattern of Elliott Wave Theory

Corrective Wave Patterns forms opposite to the main trend. There is corrective wave after every Impulse in Elliott Wave Theory and every corrective waves has Corrective Pattern.

There are 4 main Corrective Patterns

1. Simple Zigzag Correction Pattern
2. Irregular Correction Pattern
3. 3-3-5 Flat Correction Pattern
4. Complex or Combination Corrective Pattern

Complex or Combination Correction have 2 sub patterns

• Triple Zigzag Correction
• Double Zigzag Correction

Simple Zigzag, Irregular and Flat Correction are independent pattern whereas Complex Correction is repeated combination of these independent patterns.

Total Number of Elliott Wave Patterns

There are total 7 number of main Elliott Wave Theory Patterns

1. Impulse
3. Ending Diagonal Triangle
4. Simple Zigzag Correction
5. Irregular Correction
6. 3-3-5 Flat Correction
7. Complex Correction

These are 7 major pattern and same can be divided into many sub patterns if we dig deeper. But all other sub patterns are derived from these main 7 patterns.

Which Wave can have What Pattern?

Every wave in Elliott Wave Theory Cycle has its own pattern, so let me explain which wave can have what pattern.

Wave (1) can have two patterns

1. Impulse Wave Pattern

Wave (2), (4) and (B) can have Four Patterns.

1. Simple Zigzag Correction Pattern
2. Irregular Correction Pattern
3. 3-3-5 Flat Correction Pattern
4. Complex or Combination Corrective Pattern

Wave (3) and (C) can have only One pattern.

1. Impulse

Wave (5) can have two patterns.

1. Impulse Wave Pattern
2. Ending Diagonal Triangle Wave Pattern.

Look carefully at (Image 1) to understand it visually.

I just mentioned 7 main Elliott Wave pattern because it is not possible to explain every single possibility in this article.

Otherwise one single pattern can be divided into many many sub patterns based on its inner wave composition and its Elliott Wave Personality.

There can be any number of sub patterns in Elliott Wave Theory, but all the sub patterns can be identified and understood if you understand the structure, rules and Fibonacci calculations of these main 7 wave patterns.