Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30 years of stock market experience and widely regarded as a leading expert on chart patterns. His four books, including the best selling Encyclopedia of Chart Patterns, have been translated into seven languages. He may be reached at

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Bulkowski's Expanded Flat Elliott Wave

Market

Industrials (^DJI):

Transports (^DJT):

Utilities (^DJU):

Nasdaq (^IXIC):

S&P 500 (^GSPC):

As of 02/06/2012

12,845 -17.10 -0.1%

5,334 -34.68 -0.6%

450 -1.41 -0.3%

2,902 -3.67 -0.1%

1,344 -0.57 0.0%

YTD

5.1%

6.3%

-3.2%

11.4%

6.9%

Tom's Targets Overview: 02/03/2012

13,100 or 12,400 by 02/15/2012

5,500 or 5,150 by 02/15/2012

470 or 440 by 02/15/2012

3,100 or 2,800 by 02/15/2012

1,375 or 1,300 by 02/15/2012

Test Portfolios and CPI

Indus. strength: 1.8%

Mutt Losers: None YTD

Mutt Winners: 2.3%

Wilder RSI: None YTD

CPI:

on 12/20/2011

This page describes the expanded flat corrective wave of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

The expanded flat wave correction in a bull market. Flats come in three varieties, regular, expanded, and running. This page concerns itself with the expanded flat. An expanded flat is more common than a regular flat. Elliott called an expanded flat an irregular flat. The chart to the right shows the basic configuration of an expanded flat in a bull market. Notice how wave B extends beyond the start of wave A, and wave C extends beyond the end of wave A.

The extended flat wave correction with subwaves in a bull market. The chart to the right has the same general shape as the preceding chart but with more detail. It shows the subwaves within the extended flat 3-3-5 correction. The red numbers 1-5 describe the line segments or subwaves within the ABC correction. Wave A is composed of three subwaves as is wave B, but wave C has five subwaves. That's where the flat 3-3-5 term comes from. A flat is a term used for any ABC correction that has 3-3-5 subwaves.

The expanded flat wave with subwaves in a bear market. This chart shows the same expanded flat 3-3-5 corrective wave but in a bear market (also called an inverted expanded flat). Waves A and B are threes and wave C is a five. Wave B ends beyond where wave A starts, and wave C ends well beyond where wave A ends.

Expanded Flat Elliott Wave Rules

The three wave corrective phase has rules that govern its shape. They are listed here.

Corrective waves can head up or down.
The corrective phase aligns against the trend of one higher degree (a counter trend move).
Wave B terminates beyond the start of wave A.
Wave C terminates beyond the end of wave A.

-- Thomas Bulkowski

Bulkowski's Expanded Flat Elliott Wave

Expanded Flat Elliott Wave Rules

See Also