A double combination is a complex corrective form and, as the term corrective suggests, it is a correction to be met either as a second wave type, or a b wave type when the b is part of a flat structure, or a fourth wave type, or being part of a leg of triangle, etc. In other words, many possible places for such a correction to be found and this one is tricky as well, because it ends with a contracting triangle.
The problem with the contracting triangle is that such a triangle is usually a continuation pattern, in the sense that it is met as a fourth wave type or a b wave type, and in both these cases price has the tendency to exit the triangle into the same direction it entered initially. However, in a double combination, and actually in a triple combination as well, the contracting triangle that ends the pattern is a reversal triangle, meaning price will exit the correction in the opposite direction as the one it entered in the first place.
A double combination it is formed of two different corrective phases, connected by an intervening x wave, or a connective x wave.
The first correction can be any type of a corrective form, except a triangle, and the second part of the correction is a contracting triangle. Being a corrective form, double combinations come in the form of threes, and the normal labeling for such a pattern is abc-x-abcde, when the combination ends witht a contracting triangle. Now, you may see as the last part having five different waves, but each of those five waves is formed out of three different waves of a smaller degree, hence the name of double threes.
The recordings that come with this chapter will show you examples of a double combination and they happen quite often on the foreign exchange markets especially due to the fact that they are so deceiving in nature. There a going to be represented double combinations corrections that end with a contracting triangle and showing you one example that ends with a flat with a c wave failure.