Flat Correction
Regular · Expanded · Running · Rules, Fibonacci Extensions & Trading Applications
A flat correction is a sideways Elliott Wave corrective pattern consisting of three waves (A-B-C) where Wave B retraces deeply into Wave A territory (90–110%+). Unlike the sharp directional zigzag, flats are characterised by consolidation — the market moves sideways before resuming the trend. Wave B’s deep retrace catches many traders off-guard, and Wave C’s Fibonacci extension provides the primary entry and target zone.
What is a Flat Correction?
A flat correction is a sideways Elliott Wave corrective pattern consisting of three waves (A-B-C) where Wave B retraces deeply into Wave A territory (90–110%+). Unlike the sharp directional zigzag, flats are characterised by consolidation — the market moves sideways before resuming the trend. Wave B’s deep retrace catches many traders off-guard, and Wave C’s Fibonacci extension provides the primary entry and target zone.
Flat Structure: A-B-C Breakdown
| Wave | Structure | Direction | Characteristic |
|---|---|---|---|
| Wave A | 3-wave sideways pattern | Against trend | Initial correction — establishes the correction support level |
| Wave B | 3-wave deep retracement | Against Wave A | Retraces 90–110%+ of Wave A — signals strong underlying trend |
| Wave C | 5-wave impulse | Same as Wave A | Extends 1.236–1.618× Wave A — confirms flat completion |