Corrective Wave
A counter-trend three-wave (A-B-C) structure within Elliott Wave Theory that retraces part of the prior impulse before the trend resumes.
A Corrective Wave is the counter-trend response to an impulse. In its simplest form — the zigzag — it has three sub-waves: A (first counter-trend move), B (partial retracement back toward the impulse direction), and C (final counter-trend leg).
More complex corrections include flats, triangles, and combinations (double/triple threes). Corrections are inherently harder to trade than impulses — the overlapping internal structure is ambiguous until confirmed. Patience pays better than trading inside a correction.
- Wave B can retrace up to 99% of Wave A without invalidating most corrective patterns.
- Complex corrections (WXY, WXYXZ) can last longer than most traders expect.