Elliott Wave Flat Patterns to Know

A flat Elliott wave is common in the fourth wave of an impulse. For more details on the different Elliott wave flat correction types, read on…

Regular Flat Pattern

Elliott regular flat correction refers to flat consolidations where the price of the assets bounces between the resistance and support. Generally, flat patterns are corrective waves divided into 3, usually marked A-B-C.

But the structure of these patterns is usually different. For instance, wave B of a regular corrective flat is usually shorter than wave A.

In most cases, Elliott wave flat correction B will retrace at least 90% of wave A. And when this happens, wave C will be equal to wave B. if this happens, it’s a regular flat pattern.

Expanded Flat Pattern

There are several ways a flat pattern Elliott wave can behave. And at times, the second wave may retrace beyond the first wave. When this happens, it’s considered an extended or running flat pattern.

For an expanded flat correction, wave B exceeds 90% of wave A but doesn’t go beyond 138%. Therefore, you must spot the 1.382 level of the first wave as a false breakout when dealing with an expanded flat pattern.

The extended flat pattern is that wave C does break beyond wave B’s origin.

Running Flat Pattern

A running flat pattern resembles regular and extended flat patterns in several ways. It has three waves subdivided as 3-3-5. Just like with the other types of flat patterns, you need to look at the second wave.

Unfortunately, with a running flat Elliott wave, wave B doesn’t have to retract beyond the origin of wave B. On the other hand, wave C doesn’t return to the origin of wave B.

Example of Flat Patterns in Elliot Wave

In a flat pattern, wave B rarely surpasses 100% of the first wave. It may be a strong, regular, or weak pattern depending on wave B’s extension. So when dealing with an expanded flat pattern in an FX chart, you should always know that 1.382 is a false breakout.