The model is a pair of zigzags (\?) and (y), interconnected by the so-called tie-wave (x). Waves (\?) and (y) are active, as they are always directed towards the dominant trend of the model itself, as are the impulses that make up its zigzags. Wave (x) is always a counter wave, as it is directed against the trend of the pattern itself. That is why wave (x) can only be a correction, any type of correction, but most often it takes the form of a zigzag again.
Since all components of a double zigzag are corrections by definition, its wave formula is 3-3-3.
Note. The currently accepted designation of double/triple zigzags and combinations was introduced into wave theory by Frost and Prechter and is as follows. The operating waves of the model are designated alternately by the last letters of the Latin alphabet \U, Y and b, and the linking wave is always marked with the letter X. Sometimes, in order to emphasize the sequence of linking waves in a triple zigzag or triple three, the second wave is marked with XX symbols. AT this case the last letters of the alphabet were chosen to contrast with the initial letters that were historically used to denote elementary wave structures and horizontal triangles.
The initial version of the rules for double zigzags is as follows.
1. Signs of a double zigzag.
1.1. A double zigzag always consists of three main waves.
1.2. As a rule, waves V/ and Y are single zigzags.
1.3. Wave X can take the form of any corrective pattern.
1.4. The wavelength X is always less than the wavelength V/.
1.5. The Y wavelength is usually longer than the X wavelength.
2. Properties of a double zigzag.
2.1. As a rule, a double zigzag is a deep correction in relation to the dominant trend of a higher level.
3. Designation of a double zigzag.
3.1. The main waves are always denoted by the letters \V-X-Y.
On fig. 3-11 shows the detailed wave counting of the double zigzag [\y]. Waves of impulses and even elongation oґ with oґ (y) are clearly visible. On fig. 3-12 shows an overview picture of this zigzag and a real marking without prompting lines.
Indeed, Elliott was right: on a large time frame, such a swift pattern as a double zigzag can be easily mistaken for a single one.
Having not reached the targets with one zigzag, the price increases the depth of correction with the help of the second zigzag. If this is not enough, the third, final zigzag is used.
This figure clearly shows that a double zigzag was not enough to react to wedge 1, and the price formed a deeper corrective wave 2 of the Minor level in the form of a triple zigzag.
The active waves of this triple zigzag are zigzags [w], [y] and MO and are directed along the trend of the model itself. In this case, the counteracting waves are two bundle waves [x]. The wave formula of the triple zigzag is Z-Z-Z-Z-Z.
Please note that the triple zigzag formula is exactly the same as the diagonal triangle formula. If we look for external differences, then in Fig. 3-13 clearly shows that the second wave [x] (the fourth main wave of the model) does not go beyond the top of the first wave [w]. Such a mutual position of the waves for diagonal triangles is the exception rather than the rule. The main difference lies in the status of the models and their location in the senior level model.
The initial version of the rules for triple zigzags is as follows.
1. Signs of a triple zigzag.
1.1. A triple zigzag always consists of five main waves.
1.2. As a rule, waves W, Y and Z are single zigzags.
1.3. The first wave of X can take the form of any corrective pattern, except for a horizontal or sloping triangle.
1.4. The second wave of X can take the form of any corrective pattern.
1.5. The length of the first wave X is always less than the wavelength W.
1.6. Wavelength Y is always longer than the first wave X.
1.7. The length of the second wave X is always less than the wavelength Y..
1.8. Wavelength Z is usually longer than the second wave X.
2. Properties of a triple zigzag.
2.1. As a rule, a triple zigzag is a deep correction in relation to the dominant trend of a higher level.
3. Designation of a triple zigzag.
3.1. The main waves are always denoted by the letters W-X-Y-X-Z.
Despite the fact that there are already five main waves in the triple zigzag, the status of this pattern still remains corrective, and that is why it is considered a “three”. An overview picture and a detailed marking of the triple zigzag can be seen in fig. 3-14.
The price drop in the form of a triple zigzag was swift, that's a fact. But after the end of wedge 1 (left side of Figure 3-14), it would be logical to assume that a corrective phase would come, and the extension in the fifth wave of the wedge could remind the analyst of Elliott's double pass, which was exactly executed.
With their swiftness, such double/triple zigzags resemble impulses. And they themselves consist of practically the same impulses, only grouped differently, claiming the status of corrective analogues of impulse models.
Classical literature on wave theory points out that the task of double/triple zigzags is to create a correction that is adequate in depth to the previous trend. Indeed, looking at Fig. 314 there are no doubts about this, since wave 2 created a deep rollback, close in percentage terms to the classical one. Note the steep axis tilt of this model.
Note. The axis of the model is a regression line based on the least squares method (dash-dotted line on the right side of Figure 3-14). As a rule, technical analysis programs allow you to build such lines automatically.
If we consider the triple zigzag in Fig. 3-15 separately from the overview wave pattern, this time it looks like a diagonal triangle. Same formula Z-Z-Z-Z-Z, the same intersecting acting waves in the form of "triples" and full compliance with the signs of diagonals.
However, one should not forget that the diagonal triangle, although it is a separate wave model, can only be the final wave in the higher level model. In addition, he is an active model and has the status of "five". And the triple zigzag is a completely independent corrective pattern, that is, it can form on the site of any corrective wave and has the status of a “three”.?
The reaction of the market to the impulse (a) really turned out to be deep: the corrective wave (b) almost reached the beginning of the impulse. But the movement towards the target was no longer as fast as in the first example of the triple zigzag (left side of Figure 3-14), as the pattern axis became flatter. In addition, significant intersections of the acting waves with each other have formed.
These two examples could limit the consideration of possible varieties of triple zigzags, however, the combination of these elementary wave structures turned out to be more diverse than previously thought.
From this lesson, we will begin consideration of the whole variety of compound corrective wave patterns that are formed from the zigzags and planes we have already studied. Corrections are the hardest part of wave analysis. It is much easier to mark a developing impulse than a correction, because in the latter the number of possible combinations from known patterns is quite large.
double zigzag - these are two zigzags separated by a corrective wave-bundle, which can take the form of absolutely any corrective wave pattern, but most often it ends in the form of a regular zigzag. As a rule, a double zigzag is a deep correction in relation to the wave being corrected.
Consider the structure of this model in the figure below:
So, the main acting waves of a double zigzag are denoted W and Y, corresponding to the wave level on the markup (in the example, the Minuette level is used). The active waves here are zigzags, but if we remember their structure, it will become clear what actually moves this model. impulses in the waves BUT and FROM each of the two zigzags. The counter wave in a double zigzag is marked with the symbol X(again remember about wave levels).
An important point is the transition point of the correction from a regular zigzag to a double one. Most often, this happens when the first zigzag failed to correct the previous trend, neither in time nor in amplitude. It is in this case, after a local correction, that another zigzag begins to develop. Bundle wave X can be interpreted as the beginning of a new trend wave. If you opened a trade at the end of a wave B, taking it as the second wave, then in the course of the development of wave C, it would be most reasonable to transfer the stops into a breakeven.
In the markets, this model is formed with some features, which will be discussed below. The model can satisfy all the rules double zigzag, but due to the ratio of some component waves, discrepancies sometimes appear in the wave count.
Double zigzags can be divided into two groups - patterns with a long or deep X wave and patterns with a relatively small linking wave. Some options for the formation of double zigzags from the first group are presented in Chart 1.
Chart 1
Chart 1 shows two varieties of double zigzags. In the first case, wave X took the form extended horizontal correction. In the second case, wave X is a deep correction, zigzag. Such models, as a rule, do not cause inconsistencies in markup.
Chart 2
Now let's look at Chart 2. It shows a double zigzag with a long, and rather horizontal, linking wave. Wave [y] in this example significantly exceeds wave [w] in amplitude. Unequal amplitude of acting waves double zigzag common, especially in the forex market. It is also interesting that the wave (c) of [y] here it is in the form diagonal triangle, thus confirming the end of the entire wave X .
Graph 3
The double zigzag in wave X in Chart 3 is a great example of a pattern with a continuous linking wave. Note that the [w] , [x] and [y] waves are themselves double zigzags. A double zigzag marked as an ellipse will be considered below.
However, if the bundle wave X is shallow in amplitude and short in time, then other marking options appear.
Chart 4
So, if 4 impulses are formed, and the wave-link X is not more significant than the other two opposing waves, then two more variants of the wave counting are possible. This is a zigzag with an extended wave A or wave C. In each of the options, it is important to comply with critical levels (shown by the red dotted line in Chart 4).
If we assume that wave A is lengthening, then the wave in its composition should not go beyond the end of wave [i] . All other impulse rules must also be followed.
In the variant with wave C lengthening, it is important that the wave does not renew the end point of wave B, and the wave does not go beyond the end of wave [i] .
Chart 5
Before us is the same selected double zigzag from Graph 3. It can be seen that the end of the wave b of (y) went beyond the wave completion level (w). Thus, this wave pattern can be defined solely as double zigzag, and nothing else.
Chart 6
It would seem that in Chart 6 we have a common double zigzag, but not everything is so simple, especially on the GBP/JPY cross. The opposing waves differ only in duration, all of them horizontal direction. Moreover, the wave X gives way to the wave [B] of y by time span. Let's try to mark this section of the chart a little differently.
Chart 7
After a simple regrouping of waves, you can get a zigzag with a significantly elongated wave With. The disadvantage of this option is the duration of the wave b- She is the smallest. But there is another option.
Chart 8
Now the wave is lengthened on the chart a. Correction in a wave b- the longest among other corrective waves. More than that, the wave b is oblique triangle(this model, discovered by Dmitry Vozny, we will study later). In my opinion, this markup is the most suitable for this section of the chart.
Of course, someone may consider that a double zigzag is more appropriate here, as in Chart 6. Both markings have the right to exist, and the choice between them is based on taking into account the characteristics of specific waves in a certain place on the chart.
A price move like in Charts 6-8 can be an unfortunate start to an impulsive price movement. For example, after the release of some news, the trend that has begun breaks down, and the movement in the trend higher order continues.
We can draw the following conclusion. If a bonding wave X is long, then questions and identification of the model do not arise. In the case of a small wave X, other marking options are possible.
The figures that can form correction waves are very diverse and complex. This is natural, since the market spends most of its time in corrections, and distinct movements along the trend take up less of the time. The complexity of corrective waves creates significant difficulties for their analysis, so they can usually be identified only after they have fully formed. But this complexity should not stop us, because, as we noted, the market spends most of its time in corrections of the main trend. The most important rule for corrective waves is that they cannot have five sub-waves like impulsive waves, but only three sub-waves. Therefore, corrective waves are often called Threes.
There are four types of corrective waves.
Zigzags (zigzags) consist of three waves, which are subdivided into sub-waves according to the sequence 5-3-5. At the same time, wave B does not significantly reach the beginning of wave A, and wave C moves much further than the bottom of wave A. Most often, Zigzags occur in the second and B-waves (see Fig. 6-50).
In addition to ordinary Zigzags, there are double Zigzags in large and complex corrective waves. This figure consists of two ordinary Zigzags, which are connected by a three-wave X structure.
Flat figures consist of three waves, which are subdivided into sub-waves in accordance with the 3-3-5 sequence. This type of correction is more like a consolidation than a correction. Indeed, wave A is so weak that it forms only three sub-waves, wave B reaches the beginning of wave A or exceeds it, and wave C cannot reach the top of wave A. Thus, everything indicates the weakness of the correction and the strength of the main trend. In addition, a flat figure often occurs before or after an extended wave, i.e., in the fourth wave. Usually after such a figure, as after a long period of consolidation, there is a strong and fast movement.
There are four types of flat figures (see Fig. 6-51).
Regular (regular), or normal (normal). They are characterized by the fact that wave B ends close to the beginning of wave A, but not below it, and wave C ends near the top of wave A, but not inside this wave. This figure is a clearly expressed consolidation.
Expanded (expanded). They contain WAVE B, which is much higher than the beginning of wave A. and wave C is much lower than the top of wave A.
Irregular. They consist of wave B, which ends close to the beginning of wave A, but wave C does not reach the top of wave A. This pattern indicates sufficient strength of the main trend.
Runners (running) flat figures- a rare type of correction, when wave B significantly exceeds the beginning of wave A, and wave C does not reach the beginning of wave A. This figure develops in a rapidly moving market, if there is not enough time for the correction to form clearly enough.
Triangles are common classic figures in technical analysis. They must necessarily consist of five waves, each of which consists of three sub-waves. Most often these Triangles occur as a fourth wave and sometimes in a B wave (see Figure 6-52).
In these corrective patterns, Elliot used all the classic types of Triangles as continuation patterns. In a sense, these Triangles are also reversal patterns, as they signal a possible reversal after another movement along the main trend.
It is worth noting that in the stock market, Triangles are formed more accurately than in the commodity markets, and in the futures markets, only three waves inside the Triangle are possible, although at least two upper and two lower peaks are required to determine the latter.
The last fifth E-wave in a Triangle can sometimes falsely break through its side before continuing in its original direction. This breakout is most common in a symmetrical or expanding Triangle. It must be emphasized that the boundaries of the latter are usually very precise, i.e., all vertices fall on the boundaries of the Triangle.
The purpose of moving along the main trend after the formation of the Triangle is calculated in the same way as for classical figures - the amount of price change after the resolution of the Triangle is equal to its widest part.
It is interesting to see new D and E waves in these Triangles. These waves are characterized by market uncertainty, when participants, being in a long period of consolidation, are tired of waiting, but no one dares to start first. However, during wave D, the volume of trading may increase as a confirmation of the main trend, and during wave E, the decisiveness of market participants may increase. Therefore, wave E sometimes ends earlier than the set level at the border of the Triangle, which also confirms the strength of the main trend.
Combined figures. The listed simple types of corrective wave patterns can be complicated by an additional corrective wave X, which connects two standard corrective wave patterns. This wave consists of three sub-waves. Usually zigzags and flat figures are connected. Thus, there are double and triple triples. These complex patterns usually represent consolidations in a horizontal range or a channel that is slightly inclined against the main trend. Since these patterns take a significant amount of time to form, the price movement after such a long period of consolidation is usually fast and strong.
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In simple and accessible form give the basics basic course by Ralph Elliott wave analysis- the most expensive in all kinds of "Forex education" courses and the most difficult of all sections of the technical analysis of trading.
We have this material of the 11th grade of the School of Beginner Traders at the Academy Masterforex-V on a closed forum where learning starts from scratch - a basic school course, then Elliott wave analysis models and their interpretations of the MF are used as hints on the Academy's closed forum.
To understand the essence of Elliott wave analysis, you need to realize 3 things, without which it will be difficult for you to become an experienced professional trader who earns trading "for a living":
Below is the Elliott wave analysis model. It is unlikely that you will remember them from the first and even from the second time, but just try to determine for yourself where:
- trend - the momentum on which you need to open deals;
- and where is the correction, understanding that this knowledge is an obligatory PART of your future professionalism and success in Forex.
Elliott wave theory gives an algorithm for the movement of Forex currency pairs
A trend (impulse waves) has a 5-wave structure (waves are denoted by numbers 1, 2, 3, 4, 5, A, B, C) and consists of impulse and correction waves.
- Impulse waves 1, 3, 5:
- longer correction waves;
- show the direction of the trend.
- Correction waves:
- 2nd and 4th waves, each of which has a 3-wave structure (a-b-c) and shows the direction opposite to the current trend.
Rice. 2. Pattern of an uptrend (bullish) trend The Importance of Elliott Waves for a Forex Trader
- To follow the trend, you need to see the DIRECTION of the trend - impulse waves that are longer than correction waves.
- Wave analysis allows you to see at what point of movement currency pairs are in terms of the structure of the wave movement (whether the trend starts or is already ending).
- The goals of the movement of the trend waves (if the top of the 1st wave is broken, then the 3rd wave will reach at least 162%).
Sub-wave structure on a trend
- The 1st, 3rd, 5th impulse waves have a 5-wave structure of their subwaves.
- Correction waves (2 and 4) have a 3-wave structure and are designated A-B-C.
Rice. 3. Wave structure of momentum and correction 
Rice. 4. Structure of subwaves Characteristics of each wave
- Wave 2 = 0.382-0.618 of the length of the 1st wave.
- Wave 3 = 1.618-2.618 of the length of the 1st wave.
- Wave 4 = 0.382-0.5 of the length of the 3rd wave.
- Wave 5 = 0.382-0.618 of the length of the 3rd wave (5th wave = 1.618x1 wave if extended).
- Wave A = 1, 0.618-0.5 of wave 5.
- Wave B = 0.382-0.5 of wave A.
- Wave C = 1.618 or 0.618-0.5 of wave A.
- In the 2nd wave, A = B = C, or A = 0.618 × 1 wave, B = 0.618 × A wave, C = 0.618 × B wave, that is, a converging triangle.
- In the 4th wave, A=C, or A=0.618×3 wave, B=0.618×A wave, C=0.618 (or 1.618)×B wave.
- In the 4th wave, B \u003d 0.236 × A wave.
Waves and Slanted Trend Channels
- the top of the 1st and 3rd waves;
This will allow you to see
- top of the future 5th wave.
being drawn
- then after the end of the 4th wave - the final channel (Final Channel).
Rice. 5. Temporary inclined channel 
Rice. 6. Final inclined channel Elongated and truncated waves
- the top of the 1st and 3rd waves;
- parallel channel from the bottom of the 2nd wave.
This will allow you to see
- the expected level of rollback of the 4th wave;
- top of the future 5th wave.
being drawn
- first the Temporary Channel;
- then after the end of the 4th wave - the Final Channel (Final Channel).
Rice. 7. Extended 3rd wave 
Rice. 8. Varieties of extensions Questions of the next level of education (Masterforex-V Academies)
- Why can the number of elongated waves in an impulse be 5, 9, 13... (call the numbers below)?
- Why in a correction the number of extended waves can be 3, 7, 11... (call the numbers below)?
- What formula do the classics of wave analysis have for counting sub-waves of lengthening in an impulse and correction?
- If the number of sub-waves in the lengthening is 15 and 17 - which of them is the impulse wave, and which is the correction of the older one?
truncated waves
The 5th truncated wave does not break through the peak of the 3rd wave. Criteria for a truncated 5th wave:
- has a 5-wave structure;
- a truncation usually occurs after an extremely strong 3rd wave.
Rice. 9. Truncated fifth wave 
Rice. 10. Bullish and Bearish Truncation Fibonacci levels and Elliott waves
The Fibonacci sequence is numbers in which each subsequent digit is equal to the sum of the previous two 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
Fibonacci Levels (Golden Ratio)
- After the first few numbers in the sequence, the ratio of any number to the next highest is about 0.618 to 1, and to the next lowest is about 1.618 to 1.
- The ratio between numbers one after the other in the sequence is approximately 0.382, which is the inverse of 2.618 (1:2.618*).
This ratio is used in wave analysis to calculate the goals of the movement of impulse and retracement waves.
- Momentum wave = Fibonacci extension levels (162-362% of wave 1).
- Correction wave = 23-76% of the previous wave.
Respectively,
Alternative-3 force majeure = cancellation of the 5-wave trend (additional wave criteria). Drawings.
right
Rice. 16. The third wave of the correct length Significance for the trader of the axioms of wave analysis and force majeure that cancels the momentum
- If the impulse is canceled there is no continuation of the trend.
- The currency will not stand still (if it cannot go up, then it will go down).
- The Masterforex-V Trading Academy daily provides both versions of the trading plan with clear criteria for switching from one option to another.
Typical mistakes of traders
Elliott wave levels
Essence:
- the market moves according to the laws of the wave theory of several wave levels;
- one wave level = 5 waves of impulse and 3 waves of correction;
- a full cycle of 5 waves of momentum and the 3rd wave of correction is just one wave more high level;
- this wave of a higher level is just a sub-wave of the next level.
Prechter gives 8 levels for numbering waves using the following "near Elliott" symbols.
Tab. 1 Classification of wave levels according to Prechter Thus, according to Prechter's calculations (a continuation of Elliott's logic of calculations) since 1932, the rise of the US stock market is in the 5th wave of the 3rd (main) level.
- 1932-1937 - the first wave of the main level;
- 1937-1942 - the second wave of the main level;
- 1942-1966 - the third wave of the main level;
- 1966-1974 - the fourth wave of the main level;
- 1974-19?? - the fifth wave of the main level.
Rice. 21. Prechter Supercycle An example of the designation of waves by classical waveforms and their interpretation
Rice. 22. Classical wave counting of the market movement Drawing interpretation:
- 1st wave of intermediate level;
- consists of 5 waves of the secondary level (1), (2), (3), (4), (5);
- minute level shows waves 1, 2, 3, 4, 5 a-b-c.
Structure of waves of several wave levels
Rice. 23. Ratio of wave levels Diagonal triangles as special 1st and 5th impulse waves
Special wave formations in waves of impulse of the 1st or 5th wave, in which the 4th sub-wave (of a shallower level) enters the zone of the 1st wave.
Signs of a trend reversal in terms of wave analysis
- Final diagonal triangle.
- Extended 5th wave.
- Truncated 5th wave.
Correction models and principles of their alternation
The 2nd and 4th waves are corrective.
Rice. 29. Corrective waves in a five-wave pattern Movement on these waves takes the form of the following correction patterns:
- Zigzags (5-3-5) (Zigzags), or a simple (zigzag) correction.
- Planes (3-3-5) (Flats), or flat (flat) correction.
- Triangles (3-3-3-3-3) (Triangles), or Triangular correction.
- Double triples and triple triples (combined structures).
- Wrong correction.
Classic wave analysis correction models
Simple (zigzag) correction (sub-wave structure 5-3-5).
Rice. 30. Corrective figure "Zigzag" Its variety is double zigzag.
Rice. 31. Corrective figure "Double Zigzag" Flat (flat) correction (sub-wave structure 3-3-5)
It differs from the previous model (zigzag) in that:
- the sequence of its subwaves is 3-3-5;
- has the shape of a flat (flat) instead of a directional movement, as in a zigzag correction;
- usually precede or follow wave lengthenings.
Rice. 32. Correction figure "Plane" Triangular Correction, or Horizontal Triangles
- 3-3-3-3-3 and are marked a-b-c-d-e.
Rice. 33. Horizontal Triangle Double and triple triplets
Rice. 34. Double Three 
Rice. 35. Triple Three There are two types of triangles: converging and diverging.
Converging triangle
Rice. 36. Converging Triangle 
Rice. 37. Converging Triangle 
Rice. 38. Converging triangle in the fourth wave Divergent triangle The principle of alternating correction patterns in depth and structure on the 2nd and 4th wave
The essence of the alternation is that if the 2nd wave is a sharp correction, then the 4th wave will be a side correction and vice versa.
Rice. 42. Simple 2nd wave and complex 4th 
Rice. 43. Simple second wave and complex 4th Brief conclusions of Masterforex-V about Elliott wave analysis
- it summary(basics) of Elliott wave analysis, set out in hundreds of pages of books by Prechter, Frost, Fisher, Vozny, Balan and other classic wavers.
- This material, in one form or another, is given in expensive courses at Dealing Centers and brokerage campaigns as the highest stage of Forex technical analysis.
- This material is presented in Masterforex-V Academy as initial Forex analysis and education stage (11th grade of the School for Beginner Traders at the Masterforex-V Academy).
- At the closed forum of the Academy (the theory of the Masterforex-V trading system, other TS and DAILY practice of applying the theory to specific trades) - numerous examples of methodological and practical errors of the classic wave analysis of trading, including examples as masters of wave analysis for 6 working days 5 (!) times redo their previous wave analysis. So, currency pairs absolutely go NOT in this way and NOT where they are prescribed by the "laws" of wave analysis in the interpretation of a particular master (D. Vozny and others).
- In the following chapters of the book, we will try to reach the METHODOLOGICAL shortcomings of specific methods of Elliott wave analysis, the solution of specific unsolved mysteries of the classic Elliott wave analysis in the Masterforex-V trading system, which, I hope, will help traders in their work on Forex.
