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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 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 3 subwaves as is wave B, but
wave C has 5 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.
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 3s and wave C is a 5.
Wave B ends beyond where wave A starts, and wave C ends well beyond where wave A ends.
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.
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