With this
remarkable observation, Elliott linked Nature's Law with human behavior. In
the sunflower, pinecone, or pineapple there are spirals that alternate by
first turning clockwise and then counter-clockwise. This alternation repeats
itself in the corrective wave 2 and wave 4.
There are three types of
corrections:
1. Zigzag in a downtrend (the opposite for
the uptrend).
2.
Flats in a downtrend (the opposite for the uptrend).
c ® © ©
(a) Minor (b) Intermediate (c) Major 3. Triangles
in an uptrend or downtrend.
(a)
Uptrend (b) Downtrend
"The student cannot be certain
that a triangle is forming until the fifth wave has started," observed Elliott
(p. 53). This makes it very difficult to forecast price moves. Forex
101.
