Ok Sive thanks for the reply and I forgive you
Some gurus adopt the pattern as their own and call it a "two step" or "zig zag" or whatever but I believe RN Elliott is the originator of the ABC "simple" corrective pattern. He died in 1949 but markets still reflect his work pretty accurately.
Just to clarify, the wave 2 and wave 4 are the corrective waves and the waves 1, 3 and 5 the impulsive waves.
Corrective waves can be either a "simple" ABC pattern or one of several "complex affairs.
Elliott's rule of alternation is that if Wave 2 is a simple ABC pattern then Wave 4 will be a complex pattern and vice versa. This can be useful information as it most always applies and I have found over the years that triggering off the end of the simple pattern is possibly the easiest and most successful trade set-up we could wish for. Just as Sive alerted. Of course tech analysis is that much more unreliable during thin holiday period conditions such as we are seeing right now. Again, Sive has alerted this already.
David.
