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2018issue C0912-21

V-wave count construction from impulse and ABC corrections

A V-wave is two swings in the trend direction plus one retracement, treated as a single correction pattern. That unit is nested inside Elliott-style impulse and ABC numbering, Fibonacci size checks, and a stacked set of horizon labels.

  • A V-wave is two trend swings plus one retracement, treated as one correction pattern and as the building block inside larger impulse and ABC structures.
  • An impulse is five waves, three with the trend and two pullbacks, each pullback a single wave or one or more interconnected V-waves, still labeled 1-5.
  • ABC construction begins only after a completed V-wave, and Fibonacci retracement is used to test whether a pullback still fits wave 4 or wave B.
  • Horizon-stacked labels let medium-term, shorter-term, short-term, and intraday impulse and correction counts appear on the same chart.
Entries in this reading3 entries
Current trackABC correction21 readingsElliott wave analysis165 readingsFibonacci retracement165 readings

Start with the V-wave

A V-wave is constructed as two swings in the trend direction plus one retracement. That three-wave set is treated as a single correction pattern, and later as the building block inside larger impulse and ABC structures.

Wave construction stays inside Elliott-style numbering even after the count is simplified. Impulse legs keep 1-5 labels and correction legs keep A-C labels, because each wave can itself contain smaller waves.

Read swings on a noise-reduced chart

A modified-renko brick chart is used to suppress price noise so the swings used for wave construction are easier to see than on a standard bar chart.

A high-low zigzag is a tick-based swing overlay. Its only construction role is to display those price swings so V-waves can be annotated more consistently.

Nest the V-wave inside an impulse

An impulse wave is constructed as five waves: three in the trend direction and two pullbacks. Each pullback is either a single wave or one or more interconnected V-waves.

In an uptrend, impulse construction includes three checks. Wave 2 does not move below the start of wave 1. Wave 3 is never the smallest impulse wave. Wave 4 does not enter wave 2 territory.

Use a Fibonacci check to keep wave 4

A wave-4 pullback is constructed as a limited, often flat correction of wave 3. It commonly sits in the 23.6% to 38.2% Fibonacci retracement range and can be used to synchronize the impulse count.

Fibonacci retracement is a ratio check on swing size. Here it is used to judge whether the pullback still fits a wave-4 construction rather than a different count.

Begin ABC construction after a completed V-wave

ABC construction begins only after a completed V-wave. If wave A is itself an impulse, a zigzag correction is more likely. If wave A is corrective, a flat correction is favored for the whole structure.

Check wave B before keeping the label

Wave B is constructed as a correction of wave A. The most common pullback is 50% of wave A. A retracement larger than 61.8% is treated as evidence that the label is probably not wave B.

Stack labels by horizon

Wave labels are stacked by horizon so one chart can show several counts at the same time. Medium-term labels use [1]-[5] and [A]-[C]. Shorter-term labels use (1)-(5) and (A)-(C). Short-term labels use 1-5 and A-B-C. Intraday labels use i1-i5 and a-b-c.

Fill a larger C-wave on a modified-renko zigzag

On a modified-renko zigzag chart, a larger (C) low can be constructed by projecting Fibonacci extensions from the last B-wave. In the archive example, that low aligns at the 161.8% projection, while nested abc and ia/ib/ic swings fill the A and C legs.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
17 of 18 in the ABC correction track
201830-33 pp.Next on ABC correctionConstructing short hypotheses from completed ABC correctionsThe last upward swing is classified as a completed ABC correction before a short-side construction is considered.
All readings on this track · 18 readings
  1. 1986Copper wave degree and channel objectives
  2. 1987Constructing a price-time Fibonacci window for the ABC correction
  3. 1989Building entry and exit rules from pivots, channels, and abc-corrections
  4. 1989Constructing ABC Fibonacci expansion objectives
  5. 1990Calendar windows for three-wave pullbacks
  6. 1990Labeling wave 1, B, or X after a five-wave C
  7. 1991Constructing an Elliott zigzag with ABC Fibonacci checkpoints
  8. 2002Constructing Elliott wave ABC and triangle pattern counts
  9. 2003A bear-market bounce as a second wave, an RSI nonconfirmation, and an ABC relabel
  10. 2004A pretrade risk lockbox at Elliott ABC ends
  11. 2005Three-check identification of an ABC pause in an uptrend
  12. 2005The 61.8 percent Fibonacci line as a zigzag kill-switch
  13. 2005Constructing volume-float channels for ABC corrections
  14. 2008When monthly wave counts split, freeze the ABC and Fibonacci brackets
  15. 2012Fiery bull construction from sector thrust to wave count
  16. 2013Critiquing rigid Elliott wave ratios after computerized trading
  17. 2018V-wave count construction from impulse and ABC corrections
  18. 2018Constructing short hypotheses from completed ABC corrections
By fieldWaves and ratios183 readingsBy year2018172 readings
All 21 readings tagged ABC correction
Also on ABC correction5 readings
1987Constructing a price-time Fibonacci window for the ABC correction1990Labeling wave 1, B, or X after a five-wave C1991Constructing an Elliott zigzag with ABC Fibonacci checkpoints2005The 61.8 percent Fibonacci line as a zigzag kill-switch2008When monthly wave counts split, freeze the ABC and Fibonacci brackets