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📘 Wave Theory Course

Session Three: The Basic Structure and Characteristics of A-B-C Corrective Waves

After completing the five-wave upward movement, the market does not rise continuously but enters a natural three-wave corrective phase, known as the A-B-C structure, also referred to as the 'corrective wave'.

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🔁 The basic form of A-B-C is as follows:

1️⃣ Wave A:

• The first wave down, usually occurs quickly, but most investors see it as a pullback rather than a reversal.

2️⃣ Wave B:

• The rebound wave, upward structure, appears to be reaching new highs, but is actually an illusion that often deceives people into entering the market.

3️⃣ Wave C:

• The true downward wave, often equal to or even longer than Wave A, exhibits fierce movement, and the market begins to show signs of panic.

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🔺 Three main types of corrective waves (forecast):

1. Zigzag: Waves A and C are impulsive waves, and Wave B is a corrective wave (5-3-5)

2. Flat: All three segments are three-wave structures (3-3-5)

3. Triangle: A compressed consolidation with a five-wave structure (3-3-3-3-3)

These are the patterns that will be analyzed in depth later.

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💡 Key Concepts:

• Corrective waves often bring confusion and uncertainty, so mastering corrective waves is crucial.

• It is not the beginning of a reversal, but a period of correction within a trend, and it may also be part of a larger wave cycle.