Subscribe to RSS feeds Bulkowski Blog via RSS

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral. My books...

Encyclopedia of Chart Patterns 2nd Edition book.
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Picture of Bumper.
Kindle
Picture of the head's law.
Kindle

Bulkowski's Running Flat Elliott Wave

Class Elliott Wave Fundamentals Psychology Quiz Studies Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
As of 11/11/2019
  Indus: 27,691 +10.25 +0.0%  
  Trans: 11,030 -37.61 -0.3%  
  Utils: 830 -5.55 -0.7%  
  Nasdaq: 8,464 -11.03 -0.1%  
  S&P 500: 3,087 -6.07 -0.2%  
YTD
 +18.7%  
 +20.3%  
 +16.4%  
 +27.6%  
 +23.1%  
  Targets    Overview: 10/31/2019  
  Up arrow27,750 or 26,900 by 11/15/2019
  Up arrow11,300 or 10,100 by 11/15/2019
  Up arrow870 or 800 by 12/01/2019
  Up arrow8,500 or 8,000 by 11/15/2019
  Up arrow3,150 or 2,950 by 11/15/2019
As of 11/11/2019
  Indus: 27,691 +10.25 +0.0%  
  Trans: 11,030 -37.61 -0.3%  
  Utils: 830 -5.55 -0.7%  
  Nasdaq: 8,464 -11.03 -0.1%  
  S&P 500: 3,087 -6.07 -0.2%  
YTD
 +18.7%  
 +20.3%  
 +16.4%  
 +27.6%  
 +23.1%  
  Targets    Overview: 10/31/2019  
  Up arrow27,750 or 26,900 by 11/15/2019
  Up arrow11,300 or 10,100 by 11/15/2019
  Up arrow870 or 800 by 12/01/2019
  Up arrow8,500 or 8,000 by 11/15/2019
  Up arrow3,150 or 2,950 by 11/15/2019

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

This page describes the running 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 running flat wave correction, bull market and bear market variety. Flats come in three types, regular, expanded, and running. This page concerns itself with the running, 3-3-5 flat wave. The chart to the right shows a running flat in a bull market (left figure) and bear market (right figure), a variety of the ABC corrective wave that follows a motive wave.

In a running flat, wave B stops beyond the start of wave A, and wave C falls short of stopping near the end of wave A. The difference between an expanded flat and a running flat is where wave C ends. In an expanded flat, wave C terminates beyond the end of wave A. The appearance of a running flat is considered rare.

The running flat wave correction in a bull market. The chart to the right has the same general shape as the preceding chart (bull market) but with more detail. It shows the subwaves within the running flat 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. A running flat (or any flat for that matter) must have the 3-3-5 configuration.

 

Top

 

The running flat wave correction in a bear market. This chart shows the same running flat 3-3-5 corrective wave but in a bear market. Waves A and B are threes and wave C is a five. Wave B ends beyond where wave A starts but wave C terminates before the end of wave A.

Since a running flat is so rare, check for the 3-3-5 subwave configuration. If a different combination appears, such as 3-3-3, then you may be looking at the start of a triangle. If wave B shows five subwaves instead of three, then it may be the motive phase of a wave of one higher degree.

Running Flat Elliott Wave Rules

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

  • Corrective waves can trend 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 before the end of wave A.
  • A running flat is rare so look for the 3-3-5 subwave combination.

-- Thomas Bulkowski

Top 

See Also

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. I'm a vegetarian -- I eat anything that eats greens.