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Zigzag Correction

By Smart Wave Analysis Research TeamUpdated How we analyzeBeginner

A zigzag is a sharp three-wave correction labelled A-B-C that subdivides 5-3-5. Wave B does not retrace too much of wave A, and wave C moves well beyond the end of wave A. Zigzags often appear in wave 2 positions.

Structure

In a zigzag, wave A is a five-wave impulse or leading diagonal, wave B is a three-wave correction, and wave C is a five-wave impulse or ending diagonal. Wave B usually retraces 38.2 to 78.6 percent of wave A and never goes beyond its start. Wave C then moves beyond the end of wave A.

Zigzag correction diagram labelled A B C with five waves in A and C and three in B
Wave A has five sub waves, wave B three and wave C five. Wave C moves beyond the end of wave A.

Fibonacci guide for zigzags

  • Wave C is often equal to wave A.
  • In a stronger correction, wave C can reach 161.8 percent of wave A.
  • Wave B commonly retraces 50 to 61.8 percent of wave A.

Where zigzags appear

Zigzags are common in wave 2 of an impulse, because the market makes a deep, sharp test of the new trend. They also appear as wave A of a flat or triangle and as parts of complex corrections.

Zigzag diagram with Fibonacci targets for wave C at 100 percent and 161.8 percent of wave A
Most zigzags end near C = A. Stronger ones reach 161.8%.

Double and triple zigzags

Sometimes one zigzag is not enough to complete a correction. The market adds a second zigzag, joined by a three-wave move labelled X. This is a double zigzag, labelled W-X-Y. Rarely, a third zigzag forms, making a triple zigzag labelled W-X-Y-X-Z. These are steep, deep corrections.

Double zigzag diagram labelled W X Y
When one zigzag is not enough, the market adds a second, creating a deep, steep correction.

Trading tips

  • When a correction falls in five waves (wave A), expect a bounce (wave B) and then another fall (wave C).
  • Use wave C equal to wave A as a first target for the end of the correction.
  • If wave C ends and the main trend resumes with strength, the zigzag was likely complete.

Frequently asked questions

How does a zigzag subdivide?

5-3-5: wave A has five waves, wave B has three and wave C has five.

How far does wave C go in a zigzag?

Often equal to wave A, and sometimes 161.8 percent of wave A.

What is a double zigzag?

Two zigzags connected by a three-wave X wave, labelled W-X-Y.

Sources and further reading

Educational content only. Nothing on this page is financial advice or a recommendation to buy or sell. Trading involves risk and you can lose money. Elliott Wave counts are probabilities, not certainties. Read our full disclaimer and affiliate disclosure.