Zigzag
Master the Most Common Corrective Pattern · Rules, Guidelines & Applications in Analysis
An Elliott Wave zigzag is one of the most common corrective patterns. It consists of three waves (A-B-C) that move sharply against the larger trend, creating a distinctive “Z” shape on the chart. Zigzags are highly directional reversals with clear structure and reliable Fibonacci targets, making them essential to identify and count correctly.
What is an Elliott Wave Zigzag?
A zigzag is one of the most common Elliott Wave corrective patterns. It consists of three waves (A-B-C) that move sharply against the larger trend, creating a distinctive “Z” shape on the chart. Zigzags are highly directional reversals with clear structure and reliable Fibonacci targets, making them essential to identify and count correctly. Learning to spot an Elliott Wave zigzag early is one of the most useful skills in wave counting. For a wider overview of the theory, see the Elliott wave principle on Wikipedia.
Zigzag Structure: A-B-C Breakdown
| Wave | Structure | Direction | Characteristic |
|---|---|---|---|
| Wave A | 5-wave impulse (or 3-wave) | Against trend | Sharp, decisive move down (or up) |
| Wave B | 3-wave correction (any type) | Against Wave A (bounce) | Retraces 50 to 78.6% of Wave A |
| Wave C | 5-wave impulse | Same as Wave A | Sharp move, often extends 1.236 to 1.618 of Wave A |
Official Zigzag Rules
Rule 1: Wave A Structure
✓ Wave A MUST be a 5-wave impulse (or 3-wave in rare cases)
✓ Wave A is ALWAYS in the direction OPPOSITE to the trend that preceded it
✓ Wave A cannot overlap Wave 4 of the preceding impulse
Rule 2: Wave B Structure & Retracement
✓ Wave B MUST be a 3-wave corrective structure (zigzag, flat, or triangle)
✓ Wave B retraces 50 to 78.6% of Wave A
✗ Wave B CANNOT retrace more than 100% of Wave A
✓ Wave B commonly retraces 61.8% or 76.4% of Wave A
Rule 3: Wave C Structure & Extent
✓ Wave C MUST be a 5-wave impulse
✓ Wave C typically reaches 61.8 to 100% of Wave A
✓ Wave C can extend to 123.6% or 161.8% of Wave A
✓ Wave C should NOT be significantly shorter than Wave A
Rule 4: Zigzag as a Whole
✓ 7-swing structure (5+3+5 subdivision)
✓ Zigzag typically retraces 50 to 78.6% of the preceding impulse wave
✓ Zigzags occur in positions 2, 4, A, or B of larger structures
✓ Wave C of a zigzag often extends into Wave 1 of the next impulse
Fibonacci Relationships in Zigzags
Wave B Retracement of Wave A
| Fib Level | Typical Range | Frequency | Notes |
|---|---|---|---|
| 50% | Shallow retrace | 20% | Less common, indicates trend strength |
| 61.8% | MOST COMMON | 60% | Golden ratio, target this first |
| 76.4% | Deeper retrace | 15% | Still valid zigzag |
| 78.6% | Maximum valid | 5% | At limit, deeper = not a zigzag |
Wave C Extent Compared to Wave A
| Fib Ratio | Wave C Size | Frequency | Analysis Implication |
|---|---|---|---|
| 0.618 of A | Shorter C | 15% | Weak zigzag, trend resuming |
| 1.0 of A | Equal waves | 50% | Most balanced, primary target |
| 1.236 of A | Extended C | 25% | Aggressive downside, deep correction |
| 1.618 of A | Extreme C | 10% | Panic conditions, violent moves |
Whole Zigzag Retracement of Prior Impulse
| Impulse Wave | Typical Zigzag Retrace | Notes |
|---|---|---|
| Wave 1 | 50 to 78.6% (as Wave 2) | Wave 2 zigzag after impulse |
| Wave 3 | 50 to 78.6% (as Wave 4) | Wave 4 often zigzag pattern |
| Wave 5 | 38.2 to 50% (as correction) | A-B-C zigzag in correction phase |
Types of Zigzags
1. Standard Zigzag (Most Common)
Structure: A (5 waves) → B (3 waves, 61.8% retrace) → C (5 waves, 100% of A)
Frequency: 50% of all zigzags
In analysis: Most reliable, easiest to count
2. Extended Zigzag (Aggressive)
Structure: A (5 waves) → B (shallow retrace) → C (extends 1.236 to 1.618 of A)
Frequency: 25% of zigzags
In analysis: Larger targets but less predictable, C extends beyond comfort
3. Truncated Zigzag (Weak)
Structure: A (5 waves) → B (3 waves) → C (only 0.618 of A)
Frequency: 15% of zigzags
In analysis: Weak signal, trend resuming quickly
4. Double/Triple Zigzag (Complex)
Structure: Zigzag (W) → Connector (X) → Zigzag (Y)
Frequency: 10% of zigzags
In analysis: Complex, with several points to reassess the count
Applying Zigzags in Analysis
Outline 1: Anticipate Wave C from the Wave B High
After Wave B completes at the 61.8% retrace, the count would favour Wave C down to 100% or 123.6% of Wave A.
| Wave B retrace | 61.8% of Wave A |
| Next move | From the Wave B high, Wave C down |
| Target C | 100% or 123.6% of Wave A extent |
| Invalidation | Count invalid above the Wave B high |
Outline 2: The Wave C Low and Trend Resumption
After Wave C completes, expect trend resumption. A close above Wave A high confirms the zigzag is complete.
| Confirmation | Close above Wave A high = zigzag complete |
| Follow-through | Break above the Wave A high, then a shallow pullback that holds |
| Target | Wave 1 of new impulse (extends beyond Wave A) |
| Invalidation | Count invalid below the Wave C low |
Outline 3: The Wave B Bounce
During Wave B formation, the count would favour a bounce from the Wave A low up to the 61.8% retrace level.
| Start | Wave A low (start of Wave B) |
| Target | 61.8% of Wave A (Wave B expected high) |
| Invalidation | Count invalid below the Wave A low |
| Duration | Often 1 to 3 days (Wave B is fast) |
Zigzag Identification Checklist
- Does Wave A have 5-wave subdivision (or 3-wave in rare cases)?
- Is Wave A moving AGAINST the larger trend?
- Does Wave B retrace 50 to 78.6% of Wave A? (61.8% most common)
- Is Wave B a 3-wave structure (ABC)?
- Does Wave C have a 5-wave impulse structure?
- Is Wave C moving in the same direction as Wave A?
- Does Wave C reach 61.8 to 161.8% of Wave A (typically 100%)?
- Does the zigzag retrace 50 to 78.6% of the prior impulse?
- After completion, does price break above Wave A high? (confirmation)
- No overlap violations between waves
Common Zigzag Mistakes to Avoid
✗ Mistake 1: Calling a Wave B retrace >78.6% a zigzag.
✓ Fix: If B retraces >78.6%, it’s likely a flat or other corrective structure, not a zigzag.
✗ Mistake 2: Forcing a 3-wave pattern into a zigzag.
✓ Fix: Wave A MUST have 5 waves (sharp, not gentle). If you see 3 waves in Wave A, it’s NOT a zigzag.
✗ Mistake 3: Not waiting for Wave B completion before labelling Wave C.
✓ Fix: Confirm the Wave B retrace Fibonacci level is hit before counting Wave C as under way.
✗ Mistake 4: Assuming all Wave C’s equal Wave A size.
✓ Fix: Wave C often extends 1.236 to 1.618× Wave A, use all Fibonacci targets.
✗ Mistake 5: Missing zigzags because Wave B looks “too big.”
✓ Fix: Wave B can be 50 to 78.6% retrace, trust the math, not the eye.
Real Example: XAUUSD Zigzag (Wave 2)
Gold completes Wave 5 of impulse at 4,800, then enters a Wave 2 correction as a zigzag.
| Wave | Structure | Price Level | Fibonacci Notes |
|---|---|---|---|
| Wave A Down | 5-wave impulse | 4,800 → 4,500 (300 pips) | Sharp decisive move down |
| Wave B Up | 3-wave bounce (Zigzag) | 4,500 → 4,685 (185 pips) | 61.8% of 300 pips = 185 pips ✓ |
| Wave C Down | 5-wave impulse | 4,685 → 4,415 (270 pips) | 90% of Wave A = 270 pips ✓ |
Analysis Outline
1. Wave B high at 4,685, with Wave C favoured lower from there
2. Target: 4,415 (90 to 100% of Wave A down from 4,685)
3. Count invalid above 4,750 (above the Wave B high)
W-X-Y Correction Structure
| Wave Component | Wave Structure | Analysis Implication |
|---|---|---|
| Wave W | 5-wave corrective pattern (down) | Initial correction, establishes support |
| Wave X | 3-wave countertrend (up) | Connecting bounce, more correction ahead |
| Wave Y | 5-wave or complex (down) | Final target, deeper than Wave W alone |
Quick Reference: Zigzag Essentials
- Structure: A (5 waves) → B (3 waves, 61.8% retrace) → C (5 waves, 100% of A)
- Best Fib Levels: Wave B = 61.8% of A | Wave C = 100 to 123.6% of A
- Whole Zigzag Retrace: 50 to 78.6% of prior impulse
- Frequency: 50% standard · 25% extended · 15% truncated · 10% complex
- Most Reliable Read: Wait for the Wave B 61.8% retrace, then favour the Wave C direction
- Key Rule: Wave B >78.6% = NOT a zigzag, reassess the pattern