In the third to fifth issues, we introduced two modes of driving waves: impulse waves and diagonal triangles. In this issue, we will briefly introduce corrective waves.
As the name suggests, corrective waves resist the movement of the primary trend at a higher wave level. The struggle between these opposing wave levels often makes corrective waves more difficult to identify than driving waves, and there are more variants of corrective waves than driving waves. Furthermore, when corrective waves unfold, they often rise or fall in complex forms, so technically, the sub-waves of the same wave level may appear to be other wave levels due to their complexity and duration.
All these factors mean that corrective waves are often only classified into recognizable patterns after they have fully formed. Because the endpoints of corrective waves are more difficult to predict than those of driving waves, we must exercise more patience and flexibility in our analysis when often in a state of winding correction compared to when we are in a continuous driving trend.
Corrective waves will never be five waves; only driving waves can be five waves. Therefore, the initial five waves moving in the opposite direction to the larger trend are never the end of a corrective wave but only a part of it.
Various correction processes present two styles: one is steep correction, which moves in a steep angle opposite to the larger trend; the other is lateral correction, which always results in a net pullback against the preceding waves, usually including movements that return to or exceed the starting point of the correction, forming a lateral pattern.
The clear corrective methods are mainly divided into four categories:
Sawtooth shape 5-3-5 includes three types: single sawtooth, double sawtooth, and triple sawtooth.
Platform shape 3-3-5 includes three types: ordinary platform shape, expanding platform shape, and trending platform shape.
Triangle 3-3-3-3-3 includes four types: three variants of contraction (symmetrical triangle, descending triangle, ascending triangle) and one variant of expansion (expanding triangle or anti-symmetrical triangle).
Combined shape: includes two types: double three waves and triple three waves.