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.
Related Terms
Elliott Wave Theory
A fractal model of market cycles: price moves in five waves with the trend and three corrective waves against it, repeating at every time frame.
AdvancedImpulse Wave
A five-sub-wave structure (1-2-3-4-5) that moves in the direction of the larger Elliott Wave trend — the core engine of directional moves.
AdvancedMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerThrowback
A post-breakout pullback to the broken resistance level, which now acts as new support — a common re-entry opportunity in trending markets.
Beginner