In this webinar recording, we assessed a challenging pattern whose name says it all…complex correction.
In Elliott Wave Theory, if the correction was too shallow in price or too short in time, multiple corrective patterns may string together to yield a combination. As you can imagine, these corrective patterns can be difficult to identify and frustrating to trade.
In this video, we looked at some complex combination patterns, what some of them look like, where they form, and how to trade them.
In Elliott Wave Theory, complex corrections are noted with the symbols, W, X, Y, Z. These symbols fall into a similar location as your corrective A-B-C would.
Complex corrections may appear in the 2nd wave, 4th wave, or B wave of an eight wave Elliott Wave sequence. Many times combination or complex corrections appear in the 4th wave or B wave.
Unless you are trading the pattern at large degree where you can splice and anticipate the ending of one of the corrective patterns making up the combination, then it is typically best to wait for the correction to end before wading into the trade.
See how Elliott Wave Theory is applied in the current environment in the main markets. Join Jeremy in the US Opening Bell webinar on Mondays.
If you cannot make the live webinars, but wish to learn more about Elliott Wave theory, grab our beginning and advanced Elliott Wave guides.
Missed the first four webinars in this series? We began with Trading Elliott Wave Impulses.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
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