ZigZag Rules v2

Question 1

ZigZag Rules

What defines a ZigZag in Elliott Wave Theory?

Answer 1

A three-wave corrective structure (A-B-C) moving counter to the larger trend. It is the most common three-wave Elliott pattern.

Question 2

ZigZag Rules

What structures can Wave A of a ZigZag be?

Answer 2

An Impulse (IMP) or a Leading Diagonal (LD).

Question 3

ZigZag Rules

What type of pattern must Wave B always be?

Answer 3

Any corrective pattern

Question 4

ZigZag Rules

How must Wave B compare to Wave A in terms of price?

Answer 4

Wave B must be shorter than Wave A by price (all internal points considered).

Question 5

ZigZag Rules

What is the minimum price retracement for Wave B relative to Wave A?

Answer 5

At least 20% of Wave A’s price movement.

Question 6

ZigZag Rules

What are the time constraints for Wave B?

Answer 6

No minimum time, but it cannot exceed 10x the time of Wave A.

Question 7

ZigZag Rules

What structures can Wave C of a ZigZag be?

Answer 7

An Impulse (IMP) or an Ending Diagonal (ED).

Question 8

ZigZag Rules

What restriction applies if Wave A is a Leading Diagonal (LD)?

Answer 8

Wave C cannot be an Ending Diagonal (ED).

Question 9

ZigZag Rules

How must Wave C’s price compare to Wave B?

Answer 9

Wave C must be >90% of Wave B’s price but <5x Wave B’s price.

Question 10

ZigZag Rules

What is the rule about “failed fifths” in Waves A and C?

Answer 10

Both Wave 5 of A and Wave 5 of C cannot be failures (truncated).

Question 11

ZigZag Rules

What is the maximum allowable size for Wave C relative to Waves A or B?

Answer 11

Wave C must be ≤10x either Wave A or B in price or time.

Question 12

ZigZag Rules

If Wave A is a Leading Diagonal (LD), what structure is prohibited for Wave C?

Answer 12

Wave C cannot be an Ending Diagonal (ED).