What it means
ABC correction is the standard Elliott corrective structure: three waves moving against the larger trend. Wave A: initial impulse against trend (typically 5 sub-waves internally). Wave B: retracement against A (typically 3 sub-waves). Wave C: final impulse against trend, often Fibonacci-related to A (typical 1.0x or 1.618x of A). The ABC structure can be 'zigzag' (sharp A and C, small B) or 'flat' (similar-magnitude A and B). Identifying which variant gives you target zones.
Why it matters
ABC corrections complete the impulse-corrective sequence — after a 5-wave impulse, the market typically corrects via ABC before the next impulse. Trading the END of ABC corrections (entering at the bottom of C in a larger uptrend) is one of the highest-conviction Elliott setups.
How to use it
Identify a 5-wave impulse complete. Watch for the ABC correction to develop. Use Fibonacci to project where C terminates (typically 1.0 or 1.618 of A from the B-wave end). Enter at C bottom in the direction of the original impulse trend.
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