A sharp corrective pattern consisting of three waves: A-B-C, subdividing 5-3-5. The most common corrective pattern. Wave B retraces only a portion of wave A; wave C extends beyond wave A.
Description
A zigzag is a three-wave corrective pattern (A-B-C) in which wave A subdivides into 5 waves, wave B into 3 waves, and wave C into 5 waves (5-3-5 structure). Zigzags are ‘sharp’ corrections that make significant price progress against the prior trend. Wave C typically extends beyond the end of wave A, creating a new extreme in the corrective direction.
Key Points
- Structure: A-B-C, subdividing 5-3-5
- Wave B retraces 38.2%–79% of wave A (does not retrace the full amount)
- Wave C typically extends beyond the end of wave A (makes a new extreme)
- Wave C target: 61.8%, 100%, or 161.8% of wave A
- Most common in wave 2 of an impulse
- Double zigzag: two zigzags connected by an X wave (W-X-Y) — a price extension of a single zigzag
