Corrective
Zigzag
A sharp three-wave corrective pattern labeled A-B-C where Wave A and Wave C are impulse waves (five sub-waves each) and Wave B is a corrective wave (three sub-waves). Zigzags are structured as 5-3-5 and typically retrace 50%-61.8% of the prior impulse wave.
EXAMPLE
After a 300-pip rally, a zigzag correction unfolds: Wave A drops 120 pips in five waves, Wave B bounces 50 pips in three waves, then Wave C drops another 100 pips in five waves.