This is the educational post, regarding how ABC- Zig-Zag pattern looks like, how it is formed and what are the possibilities regarding targets targets and stop-loss.
1- basic structure for wave ABC.
Here, wave A starts from 0 (starting point of wave A) to A (end of wave A) wave A completes here.
Next, wave B starts from A (end of wave A) to B (end of wave B) wave B completes here.
Next, wave C starts from B (end of wave B) to C (end of wave C) wave C completes here.
2- Sub Structure
Wave A consists of 5 wave structure (wave1,2,3,4,5)
Wave B consists of 3 wave structure ( wave a,b,c)
Wave C consists of 5 wave structure (wave1,2,3,4,5)
Wave A & C must fulfill all conditions of impulsive wave where as wave B must satisfy all conditions of corrective wave.
NOTE: we have shared chart on daily time frame and in our educational post we taking 1 hour time frame for better understanding
I have marked wave A, wave B and wave C on 1 hour timeframe with sub wave counting for better understanding.
Impulsive wave conditions:
impulsive subdivides into 5 sub-waves, where, wave 1,3,5 are impulsive and wave2,4 are corrective
wave 2 cannot retrace 100% of wave 1
within all three impulsive waves wave 3 cannot be shortest
wave 4 cannot ends in wave territory of wave 1
Their must be some alteration within wave 2 and wave 4
Now after wave A formation, we must confirm it's ending and should wait for corrections.
Retracements should be confirmed with fib correction tool and corrections could end somewhere between 3% to 61%. (refer diagram)
Wave B must consists of corrective wave structure i.e. A,B,C (corrective wave could be any one of following: Zig Zag, Flats, Extended Flats & triangles, double threes, triple threes etc. shall cover all patterns in nest post!)
Now again when wave B gets end and confirmed, one must start looking for trade possibilities in wave C, as Wave C is the most powerful among all corrective wave structure. (trend based fib extension tool made used for finding targets of wave C)
Normally wave C must end after extending 100% of wave A ( normal conditions) and in extended conditions it must ends somewhere 100% to 161% or even more.
1- basic structure for wave ABC.
Here, wave A starts from 0 (starting point of wave A) to A (end of wave A) wave A completes here.
Next, wave B starts from A (end of wave A) to B (end of wave B) wave B completes here.
Next, wave C starts from B (end of wave B) to C (end of wave C) wave C completes here.
2- Sub Structure
Wave A consists of 5 wave structure (wave1,2,3,4,5)
Wave B consists of 3 wave structure ( wave a,b,c)
Wave C consists of 5 wave structure (wave1,2,3,4,5)
Wave A & C must fulfill all conditions of impulsive wave where as wave B must satisfy all conditions of corrective wave.
NOTE: we have shared chart on daily time frame and in our educational post we taking 1 hour time frame for better understanding
Impulsive wave conditions:
impulsive subdivides into 5 sub-waves, where, wave 1,3,5 are impulsive and wave2,4 are corrective
wave 2 cannot retrace 100% of wave 1
within all three impulsive waves wave 3 cannot be shortest
wave 4 cannot ends in wave territory of wave 1
Their must be some alteration within wave 2 and wave 4
Now after wave A formation, we must confirm it's ending and should wait for corrections.
Retracements should be confirmed with fib correction tool and corrections could end somewhere between 3% to 61%. (refer diagram)
Wave B must consists of corrective wave structure i.e. A,B,C (corrective wave could be any one of following: Zig Zag, Flats, Extended Flats & triangles, double threes, triple threes etc. shall cover all patterns in nest post!)
Now again when wave B gets end and confirmed, one must start looking for trade possibilities in wave C, as Wave C is the most powerful among all corrective wave structure. (trend based fib extension tool made used for finding targets of wave C)
Normally wave C must end after extending 100% of wave A ( normal conditions) and in extended conditions it must ends somewhere 100% to 161% or even more.