Double Three Combination Corrections

I thought this to be an opportune time to cover Double Three Combination Corrections (there may be a need to brush up on this type of correction very soon)

Double three's are some of the more complex corrections, but if caught early can offer insight to the unfolding wave count and allow one to be in a position to capitalise on the break out. They are usually rare on the larger time scales, but having knowledge of these structures will be useful for when they do occur.

Below is an example of a Double Three on the XAO taking over a month to complete. Without the labels, it can be a little difficult to see. The give away is a long sideways move that consistently moves in waves of 3. Initial interpretations may be a triangle, however, the expected end and break out of the triangle doesn't appear as one expects - leading to several re-evaluations of the wave count.

 

With the Labels added, the double three is clear. There's even a Fibonacci relationship between the waves - although it's not guaranteed every time. A confusing factor in this example was a triangle for wave 'b' '(b)' in the 'c' leg of the Triangle itself.

The larger picture shows the Double Three is the b wave in a zig-zag correction. This whole structure was the A wave in a triangle that formed over several months.

Complex Corrections

Corrections are by far the hardest to predict as their nature is usually unpredictable unless some obvious  portion has already completed. However, there may still be further corrective action at hand once a corrective wave appears complete. Double combinations fit this description and they can contain a triangle for the ending wave structure. Identifying this triangle will help to understand the next move when complete.

Many Elliott Wave analysts will incorrectly assume the triangle is actually part of the next wave sequence (eg 1st and 2nd waves) or a wave 4, thus the count will be incorrect. Triangles appear regularly in corrections and it's beneficial to understand when and where they can occur.

MACD and Elliott Waves

Identifying Waves of the same Degree

Identifying waves of the same degree. For many EW analysts, it can sometimes be difficult to determine how Elliott Waves are labeled correctly. Wave alternation (different look, price or time action) helps, but also looking at the price and time action on corrective waves can also assist.

Usually if the price and/or time of corrective waves is more than 1/3 of the previous wave, then the correction could be labeled at the same degree as the previous wave. See examples.