Elliot Wave, the ABC Correction Versus the More Complex WXY Correction

 stock here: Is this the generational buying opportunity?  Are the banker brokers really leftists at heart? Or are they more greedy capitalists and don't really carry that leftism like the successful tech giants seem to?

I am leading to....will they allow this market to tank, which would be a huge headwind for the Neo-marxist Democrat party?   I think "they" the market makers, would prefer continued division and fighting, as cover for their own crimes. 

EW from A-Eye

 

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In Elliott Wave Theory, both WXY and ABC patterns are corrective wave patterns, but they have distinct structures and interpretations. Here's a detailed comparison of WXY and ABC patterns:

ABC Correction
The ABC correction is a simple corrective pattern that typically occurs in three waves and is used to correct a previous five-wave impulse pattern. It consists of three distinct waves: A, B, and C.

Wave Structure:

Wave A: Typically a five-wave move (impulse or leading diagonal) or a three-wave move (zigzag or flat).
Wave B: Generally a three-wave move (zigzag, flat, or triangle) that retraces a portion of wave A.
Wave C: Typically a five-wave move (impulse or ending diagonal) that moves in the same direction as wave A and completes the correction.
Pattern:

ABC patterns are straightforward and are often seen as zigzags (5-3-5 structure) or flats (3-3-5 structure).
WXY Correction
The WXY correction, also known as a double zigzag or double three, is a more complex corrective pattern consisting of three corrective waves labeled W, X, and Y. It is used to link two simpler ABC corrections together.

Wave Structure:

Wave W: Can be any corrective pattern, commonly a zigzag (5-3-5) or flat (3-3-5).
Wave X: Typically a corrective wave itself, often a zigzag, flat, or triangle, linking waves W and Y.
Wave Y: Can be any corrective pattern, commonly a zigzag (5-3-5) or flat (3-3-5).
Pattern:

WXY patterns are more complex and are seen as a combination of two ABC corrections linked by an X wave.
They can take the form of double zigzags (zigzag-x-zigzag) or double threes (flat-x-flat or any combination of corrective structures).
Key Differences
Complexity:

ABC: Simpler, consisting of three waves (A, B, C).
WXY: More complex, consisting of six waves (W, X, Y, with W and Y being combinations of corrective patterns and X being a connecting corrective wave).
Structure:

ABC: Typically one complete corrective cycle.
WXY: Consists of two corrective cycles (W and Y) connected by an X wave.
Wave Counts:

ABC: Typically a 5-3-5 (zigzag) or 3-3-5 (flat) structure.
WXY: Can be any combination of corrective patterns, often seen as two ABC patterns connected by an X wave.
Practical Example
ABC Example:

Wave A: Market drops in a five-wave impulse.
Wave B: Market retraces upward in a three-wave pattern.
Wave C: Market drops again in a five-wave impulse, completing the correction.
WXY Example:

Wave W: Market drops in a three-wave zigzag.
Wave X: Market retraces upward in a three-wave pattern (zigzag or flat).
Wave Y: Market drops again in a three-wave zigzag, completing the double zigzag correction.
Conclusion
Understanding the differences between ABC and WXY corrections is crucial for applying Elliott Wave Theory effectively. ABC patterns are simpler and more straightforward, typically seen as singular corrective phases. WXY patterns are more complex, involving combinations of corrective structures linked by an X wave, often indicating a more prolonged or complex correction.

Visual Representation
For further clarity, a visual representation of these patterns can be beneficial. You can find detailed diagrams and explanations in Elliott Wave Theory resources or trading platforms that support Elliott Wave analysis.