A Corrective Wave is a three-wave move (labelled A-B-C) against the direction of the larger trend. It retraces part of the prior impulse before the trend resumes.
How traders use it
- Corrections are usually shallower and choppier than impulses.
- Common forms are zigzags, flats and triangles.
- The trend resumes once the correction completes.
See it in dtcharts
Label waves and Fibonacci levels on live charts in the dtcharts terminal with the Elliott Wave and Fibonacci tools.