Like in the case of leading diagonals and ending diagonals, there is a set of guidelines price is more likely to make when correcting in a zig-zag, and they are listed below:
- wave b should end nowhere bear beginning of wave a;
- wave b should retrace at least 30% of wave a;
- wave b is most likely to retrace wave a by about 38.2%;
- wave b is next most likely to retrace wave a by about 50%;
- wave b is next most likely to retrace wave a by about 61.8%;
- the time taken by wave b is usually between 61.8% and 161.8% of the time taken by wave a;
- wave c is most likely to have a similar price length to wave a;
- the next most likely price length for wave c are 61.8% and 161.8% or wave a;
- if wave c is much longer than 161.8% of wave a, then the pattern is more probably the beginning of an impulse than a zigzag;
the time taken by wave c is usually between 61.8% of wave a and 161.8% of the shortest wave between the previous wave a and b.
The recordings that come with this chapter are going through all the above, trying to explain them and to make everything crystal clear.
This ends the fourth chapter and it is time to move on to study three different forms of flats for the next chapter.