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When you think of a zigzag, what sort of images come to mind?

The trajectory of a lightening bolt.
The embroidery stitch on a skirt.
The course of a car… driven by Paris Hilton

Well, when WE think of a zigzag, one image in particular that comes to mind is this labeled chart from November 09.



Take a long hard look at the curvy, swervey price action underway in Intermediate wave (2). Seem at all familiar?

OF course it does because what we have here is a perfect example of the Elliott Wave pattern known as: the double zigzag.

For an official definition, Elliott Wave Principle – Key To Market Behavior provides this description:

"A single zigzag is a simple three-wave pattern labeled A-B-C with the subwave sequence 5-3-5." This means that wave A divides into a five-wave impulse, wave B a three-wave correction, and wave C, another five-wave impulse.

"Occasionally," continues EWP, "zigzags will occur twice (or at most three times) in succession, particularly when the first zigzag falls short of a normal target. In these cases, each zigzag is separated by an intervening three or "X," producing what is called a double (or triple) zigzag."

The most important distinguishing characteristic of a zigzag is that wave B NEVER moves beyond the start of wave A. Commonly, the first ABC series in a double zigzag will equal the second ABC series in terms of wave equality.

As you can see, this pattern fits the double zigzag profile to a Z. It is the real deal in real time. But, in the November 09 DFJ, editor Jeffrey Kennedy reveals why the end of this particular double zigzag is just the beginning of the opportunity to come.

Look again at the close-up above. Turns out, the entire progress of the near month-long double zigzag took place in wave (2). If the wave count is correct, the next move to occur will be Intermediate wave (3).

In the world of Elliott analysis, there are waves. And then, there are third waves. At this point, the trend is unmistakable as volume and price movement go in overdrive, initiating a trend that is, in the words of Ralph Nelson Elliott himself, "a wonder to behold."

And, in the recently published November 13 Daily Futures Juncture, Elliott Wave revisits the market to reveal that the original wave count is still very much intact.

Click the Trading Zigzags to put Elliott Wave low risk high reward trading in your favor.

Good day and good trading.

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