Trader: Expanded Flat

Elliott Wave.011-001

Rules for a flat (these are “hard” rules; they cannot be broken)

  • A flat always subdivides into three waves.
  • Wave A is never a triangle.
  • Wave C is always an impulse or a diagonal triangle.
  • Wave B always retraces at least 90 percent of wave A.

Guidelines (guidelines can be broken but it’s rare that they are)

  • When wave B is more than 105 percent as long as wave A and wave C ends beyond the end of wave A the entire formation is called an expanded flat.

Notes

  • When wave B is more than 100 percent as long as wave A and wave C does not end beyond the end of wave A. the entire formation is called a running flat.