The zigzag

In short: The Zigzag is the sharp correction — A-B-C with the substructure **5-3-5**. Its

hard limit: Wave B never extends beyond the start of wave A. Your stop will later be

placed at this line.

What it's about

The Zigzag is what most traders intuitively call a "pullback": fast, steep, deep. And it's the pattern you'll base most of your wave 2 entries on — the standard setup from lesson 2.5 depends on it.

The Structure

The crucial visual characteristic: The high of B is clearly below the starting point of A. The Zigzag does not reach the old extreme again — that's why it appears sharp and one-sided. In a bear market, the same pattern runs inversely upwards (reversibility from Module 1.5); it is then occasionally referred to as an inverted zigzag.

The Hard Rules

1. A Zigzag always subdivides into three waves. 2. Wave A always subdivides into an Impulse or a Leading Diagonal. 3. Wave C always subdivides into an Impulse or a Diagonal. 4. Wave B never goes beyond the starting point of wave A. It can be a Zigzag, a Flat, a Triangle, or

The Guidelines

• Wave A almost always subdivides into an Impulse (not a Leading Diagonal).
• Wave C almost always subdivides into an Impulse.
• Wave C is often approximately as long as wave A.
• Wave C almost always ends beyond the end of wave A.
• Wave B typically retraces 38–79% of A. If B is a Zigzag: usually 50–79%; if B is a Triangle: 38–50%.
• A line through the ends of A and C often runs parallel to a line from the end of B to the start of A — a target for C can be derived from this.

The Proportions — and an important divergence of sources

How deep does a Zigzag go?

Zigzags belong to the deep corrections. They typically retrace 61.8% or more of the immediately preceding impulse wave — especially in the position of the second wave. If the deep correction happens to be in the fourth wave, the retracement is usually 50%, rarely 38.2%.

Where Zigzags appear

A pattern you should know, but don't need yet

Occasionally, Zigzags occur twice, or at most three times, in a row — especially when the first Zigzag has missed a normal price target. In between, there is always a corrective intervening wave: Double Zigzag or Triple Zigzag. The notation with W, X, and Y belongs in Module 4 — for now, it's enough that you know the term.

From Pattern to Setup

1. Invalidation: Start of wave A. If this level is surpassed, the Zigzag thesis is dead. 2. Target zone for C: 1.618 × A (FX priority), C = A as the second target. 3. Confirmation: C must be divisible into five waves. If you only count three there, you probably

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