Once again, a flat is a corrective wave having a structure of three-three-five, and the the rules for a pattern to be considered a common flat were treated in the previous chapter.
However, a flat has also a series of guidelines, and before moving to the irregular flat pattern, the object of this sub chapter, lets try to look at the guidelines for a flat structure:
- wave a is usually a zig-zag family pattern;
- wave a is rarely an expanding triangle;
- wave b is usually a zig-zag family pattern;
- wave b is rarely a flat;
- wave b is usually greater than 95% of wave a by price;
- wave b is usually less than 140% of wave a by price;
- wave c is rarely an ending diagonal;
- wave c is often the same length as wave a and wave b (that makes the pattern a common flat);
- wave c normally reaches the end of wave a;
- In order to be considered an irregular flat, one of the easiest flat patterns to be recognized, a flat should respect the following:
- wave b must be at least 101% of wave a (that means the previous highs/lows established by the beginning of wave a should be taken);
- wave c must be at least 101% of wave b (that means the previous highs/lows established by the beginning of wave b should be taken);
The two above should be considered the minimum requirements for a pattern to be considered an irregular flat. There are some other considerations to be taken into consideration, like the fact that in an irregular flat the b wave usually don’t exceed 138.2% of the length of wave a, but important are the two rules above in order for a flat to be considered an irregular flat.