The Elliott Wave Expanded Flat Correction

The Expanded Flat correction is a common corrective structure seen in:

1. • Wave 2 and Wave 4 of a Motive Wave
   • The connector wave in a Zig Zag pattern
   • Any part of a Double or Triple Correction

Structure of an Expanded Flat Correction

In a Bullish Trend Scenario:

1. Wave A – Price moves against the trend in a 3-wave structure.
2. Wave B – Also a 3-wave structure that advances beyond the origin of wave A, typically reaching 123.6% of wave A.
   • Invalidation level: Above 161.8% of wave A
3. Wave C – Must be a 5-wave (Motive Wave) structure with RSI divergence between wave 3 and 5.
   • Common completion zones: 100% – 123.6% extension of wave A
   • Invalidation: Beyond 161.8% extension
   • Running Flat: When wave C ends above wave A

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Visual Example of an Expanded Flat Correction

Why Traders Get Confused

Expanded Flat corrections often mislead traders because:

1. • After Wave A completes as a 3-wave move, price retraces beyond Wave A’s origin, making traders think the correction is over.
   • However, a sharp 5-wave reversal (Wave C) follows, completing the structure.

Real Market Example (Bearish Trend)

Here is a real market example that features a bearish trend.

Safe Trading

Graham Lowe