Zigzag

What is a zigzag?

A zigzag is the sharpest of the Elliott corrective structures: a three-wave A-B-C move against the prevailing trend in which wave A subdivides into five, wave B into three, and wave C into five, the 5-3-5 form. Wave B stays well short of the start of wave A, typically retracing between roughly 0.382 and 0.79 of it in the Frost and Prechter guideline, and wave C typically travels beyond the end of wave A. The result looks like a deep, direct countertrend swing rather than the sideways drift of other corrective waves.

Zigzags exist in the grammar because corrections come in two broad temperaments, sharp and sideways, and the zigzag is the sharp one. It commonly appears in wave 2 positions, where the crowd still believes in the old trend and sells (or buys) hard against the new one. When one zigzag does not travel far enough, the market can chain them into a double or triple zigzag, two or three zigzags linked by intervening three-wave structures labeled X, which is what the double/triple zigzag alias refers to.

Traders care about zigzags for a practical reason: wave C is a five-wave impulse-form leg with measurable relationships. C frequently approaches equality with A, one of the standard Fib wave relationships, which is the same geometry harmonic traders measure as an AB=CD. A completed zigzag with C near equality, landing in the area of a prior fourth wave, is one of the classic places to look for the larger trend to resume under Elliott Wave Theory.

How to identify a zigzag on a chart

The 5-3-5 subdivision is the defining test; the outer shape alone is not enough.

1. 1Locate a countertrend move with two distinct legs in the same direction separated by a smaller bounce; the overall look is steep and direct, not sideways.
2. 2Verify wave A subdivides into five waves; a three-wave A points instead toward a flat or triangle interpretation.
3. 3Check that wave B is itself a three and stops well short of the start of A, most often below a 0.79 retracement per the standard guideline; a B that returns near the start of A argues for a flat.
4. 4Confirm wave C subdivides into five and carries beyond the end of A; measure C against A, with equality and 1.618 the common reference ratios.
5. 5If price fails to resume the prior trend after C, watch for an X wave and a second zigzag: doubles and triples extend the correction when the first zigzag falls short in price or time.

How traders use it

• To anticipate trend resumption: a completed 5-3-5 with C near equality with A gives a measurable zone to watch for the larger trend to reassert, with invalidation beyond the start of wave A.
• As a wave-2 template: sharp, deep corrections after a fresh impulse are counted as zigzags first, which sets expectations for a strong third wave if the low of the zigzag holds.
• For target setting inside the correction: once A and B are in place, C is projected at 1.0 and 1.618 times A, giving levels to stage countertrend exits or trend re-entries in advance.
• With honest limits: real-time subdivision counting is subjective, and a developing zigzag is often indistinguishable from the first legs of a larger decline; position sizing should reflect that the label can change as bars print.

Zigzag vs related structures