Scenario Construction Procedure (Corrective Wave after Wave (1))

2026.05.09

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“Scenario Construction Procedure (Corrective Wave after Wave (1))” is a practical method for considering as many scenarios as possible for the wave following the appearance of a 5-3-5 downward wave after an upward wave (1). When the downward wave is part of wave (2), it examines from multiple angles whether wave (2) will become a zigzag, a flat’s wave A, a double three’s wave W, or a double zigzag’s wave W.

Overview: Interpretation of the Downward Wave after Wave (1)

When a 5-3-5 downward wave appears after an uptrend, depending on whether that downward wave is “a corrective wave within the uptrend” or “part of a motive wave signaling the start of a new downtrend,” subsequent developments differ significantly.

Assuming the upward wave before the bold line has completed as wave (1), the subsequent 5-3-5 downward wave can be interpreted as wave (2) or part of it. However, wave (2) may complete as a single zigzag, or it may develop as part of a more complex structure such as a flat, double three, or double zigzag. The essence of this method is to consider each scenario and narrow down based on market movements.

Illustrated Chart

Starting from the 5-3-5 downward wave shown by the bold line after wave (1) (rise), we visualize the wave forms of each candidate. The dashed lines show the assumed trajectory if wave (3) begins.

Candidate ①: Zigzag (A-B-C) — Click to expand
S (1) A B C=(2) (3)? Bold line (A-B-C) alone completes wave (2) → immediately to wave (3)
The pattern where the 5-3-5 downward wave that appeared completes wave (2) as a zigzag (A-B-C) as it is. The simplest interpretation, assuming the subsequent move enters wave (3) (rise).
Candidate ②: Flat’s wave A — Click to expand
S (1) A B C=(2) (3)? After bold line (wave A), waves B and C follow to complete wave (2) (sideways correction)
The pattern where the 5-3-5 that appeared is merely the flat’s wave A, followed by wave B (rebound to near wave A’s start) and wave C (re-decline slightly past wave A’s end) to complete wave (2). The entire wave (2) becomes a sideways correction.
Candidate ③: Double three’s wave W — Click to expand
S (1) W X Y=(2) (3)? W-X-Y completes wave (2) (time-correction type; wave Y stops near wave W)
The pattern where the 5-3-5 that appeared is the double three’s wave W, with wave X (rebound) followed by wave Y (sideways correction) completing wave (2). Wave Y’s endpoint is near wave W’s endpoint, making it a time-correction type adjustment.
Candidate ④: Double zigzag’s wave W — Click to expand
S (1) W X Y=(2) (3)? W-X-Y completes wave (2) (deeper price correction; wave Y updates wave W)
The pattern where the 5-3-5 that appeared is the double zigzag’s wave W, with wave X followed by another zigzag (wave Y) completing wave (2). Wave Y’s endpoint further updates wave W’s endpoint, resulting in a deeper price correction.
How to read the diagrams: All four candidates share the common point that a 5-3-5 downward wave (bold line) appears after wave (1) (rise). They differ in how wave (2) completes in subsequent developments. As we move from ① → ④, wave (2) becomes more complex and deeper.

Four Wave Form Candidates for Wave (2)

Assuming the 5-3-5 downward wave is part of wave (2), the following four wave form candidates can be considered for the completed form of wave (2).

Candidate ①
Zigzag (A-B-C)
Bold line alone completes wave (2)
The case where the already-appearing 5-3-5 downward wave itself is wave (2) completed as a zigzag. The subsequent move enters wave (3) (rise) immediately.
Candidate ②
Flat’s wave A
Wave (2) completes after bold line, wave B, wave C
The 5-3-5 that appeared is the flat’s wave A; followed by wave B (rebound) and wave C (re-decline), wave (2) then completes. The entire wave (2) becomes a sideways correction.
Candidate ③
Double three’s wave W
W-X-Y completes wave (2)
The 5-3-5 that appeared is the double three’s wave W; with wave X (rebound) followed by wave Y (sideways correction), wave (2) then completes. A time-correction type adjustment.
Candidate ④
Double zigzag’s wave W
W-X-Y completes wave (2); deeper correction
The 5-3-5 that appeared is the double zigzag’s wave W; with wave X followed by another zigzag (wave Y), wave (2) then completes. Results in a deeper price correction.
📐 Guideline for Wave (2) Size
Wave (2) is considered to tend to take the following ratios relative to wave (1).
0.382
0.5
0.618

Detailed Points

  1. The upward wave before the bold line has completed as wave (1) → the bold line is wave (2) or part of it

    If we assume the upward wave before the bold line (5-3-5 downward wave) appeared has completed as wave (1), then the bold line can be interpreted as wave (2) or part of it. This is the starting point of scenario consideration.

  2. Wave (2) candidate ①: Zigzag (case where the bold line alone completes wave (2))

    The simplest case, the pattern where the appeared 5-3-5 downward wave itself completes wave (2) as a zigzag. The subsequent move becomes an immediate wave (3) rise.

  3. Wave (2) candidate ②: Flat’s wave A (wave (2) completes after bold line, with wave B and wave C following)

    The 5-3-5 that appeared is merely the flat’s wave A; the pattern in which, after wave B (rebound) and wave C (re-decline) follow, wave (2) then completes. The entire wave (2) becomes a sideways correction.

  4. Wave (2) candidate ③: Double three’s wave W (W-X-Y completes wave (2))

    The 5-3-5 that appeared is the double three’s wave W; with wave X (rebound) followed by wave Y (sideways correction), wave (2) completes. A correction pattern including time adjustment.

  5. Wave (2) candidate ④: Double zigzag’s wave W (W-X-Y completes wave (2); deeper correction)

    The 5-3-5 that appeared is the double zigzag’s wave W; with wave X followed by another zigzag (wave Y), wave (2) completes. A pattern that results in a deeper price correction.

  6. Wave (2) tends to be 0.618× to 0.5×, or 0.382× wave (1)

    There is a Fibonacci-ratio guideline that wave (2)’s size tends to be 0.618× to 0.5×, or 0.382× wave (1). Using this ratio, estimate the projected endpoint of wave (2) and verify the validity of each scenario.

Counting Procedure
The practical procedure for advancing counts in Elliott Wave analysis. Proceeding in the order large → small is the basic principle.
Count Verification Method
A method for verifying whether a constructed count is correct from multiple angles against rules and guidelines.
Alternation
The tendency for corrective subwaves within the same wave to take different forms. Used in judging wave forms of waves (2) and (4).
Depth of Corrective Wave (Previous Fourth Wave)
The correction of wave 4 in an impulse tends to target the range of subwave 4 of the previous wave.
Scenario Construction Procedure (Corrective Wave after Wave (3))
Scenario construction after a 5-3-5 downward wave appears following an upward wave (3). The sequel to this article.

Summary

Scenario Construction Procedure (Corrective Wave after Wave (1)) is a practical method for considering as many scenarios as possible for the wave following the appearance of a 5-3-5 downward wave after an upward wave (1).

Four wave form candidates for wave (2) can be considered: zigzag, flat’s wave A, double three’s wave W, and double zigzag’s wave W, with each producing significantly different subsequent developments. Wave (2)’s size targets 0.382×, 0.5×, or 0.618× wave (1), and each scenario is verified using these guidelines.

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