Correction model – Flat

Elliott Wave Theory Rules

Flat (FL)

On the chart, it is denoted by the letters ABC. A corrective model consisting of three waves. Refers to the class of sideways (horizontal) corrections, since wave B may end behind the base of wave A, unlike a zigzag. It always corrects more than 90% of the length of wave A. However, the plane can form deep pullbacks. The internal structure of the plane looks like 3-3-5. There are three types of plane behavior, where only one characteristic changes – the wave length.

Structure rules:

  • The plane is always subdivided into three waves.
  • Wave A is a zigzag.
  • Wave B is a zigzag.
  • Wave C is always an impulse or diagonal.

Rules for building a model:

  • Wave B always corrects at least 90% of wave A.

Strong norms:

  • There can be no more than one double zigzag in the model.
  • A double zigzag is most likely in wave B.

Norms:

  • Usually A and B are single zigzags.
  • Wave B is usually less dynamic than wave A.
  • Wave B is usually 100 to 138% of the wavelength of wave A.
  • According to Prekter, wave B is not limited in length, but in terms of real-time markup, some analysts override the plane scenario with B greater than 200% of the length of wave A.
  • In an expanding plane, B is equal to 124% or 138% of the wavelength of A.
  • If wave B is greater than 105% of wavelength A and wave C goes over the top of wave A, the whole figure will be called an expanding plane.
  • If wave B is greater than 100% of the length of wave A and wave C ends in the price territory of wave A, the whole figure will be called a running plane. Running planes are rare.
  • Wave C usually ends behind the top of wave A.
  • Wave C is usually 100 to 165% of the wavelength of wave A.
  • Wave C of a running plane may end at 62% of the wavelength of A. But, more importantly, wave C must be a driving wave.

Expanding planes imply the strength of the main trend of a higher degree and often precede/ follow the stretch. A running plane shows that the forces in the direction of the larger trend are even more powerful. Running planes are rare.

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