Elliott Wave: Logical Issue of WXY-XZ Notation
The WXY-XZ Conflict Territory
1 INTRO
In the modern application of the Wave Principle, the WXY-XZ notation is used to label any acceptable combination of two or three simple corrective patterns, including the zigzag multiples—double ZZ and triple ZZ. Yet there’s a difference between these multiples and the rest of the corrective combinations.
2 UNDERSTANDING ZIGZAGS
Single, double and triple zigzag bear exactly the same statement within the theory. Thus, if you count a DZZ or TZZ as a single ZZ, no information is lost, no EW count is violated or twisted in any way. For example, DZZ or TZZ can be the wave A of the regular flat, equal to single ZZ. DZZ can represent the second wave of the regular impulse, along with single or triple ZZ, still making you to expect a complex correction as the fourth according to the guideline of alternation.
The function of the zigzag and its derivatives—all of which are basically sequences of 2, 4 and 6 5-wave segments, excluding the X waves—lies in the possibility of covering (correcting) a large distance on the vertical (price) scale in a relatively short period of time. This function or message is radically different from all other corrective combinations than double and triple zigzag, i.e., from the function of complex corrections that consist of at least one pattern, without considering the X waves, other than ZZ.
3 UNDERSTANDING COMPLEX CORRECTIONS
Complex correction is a combination of corrective patterns, which primary function is elongating the fractal in time, allowing it to achieve the necessary requirements of fractal harmony.
Trying hard not to disappoint the universe in this regard, complex corrections often have many time-stretched 3-wave patterns within them, such as a 3-wave combination of two flats, sub-waves A of which are themselves made up of 3-wave patterns; or the horizontal triangle, a megastructure of five 3-wave formations.
4 FUSION
Notice how in each case the internal wave configuration performs the function of the pattern it creates. The time-drawn structure of complex corrections not just counterparts the sharp and rapid profile of the zigzag and its sequences, but places complex correction on the other side of the EW spectrum, in opposition to ZZ, DZZ, TZZ. Naturally, the middle part of the spectrum ends up hosting the rest—not time-radical—corrective patterns such as flat, or corrective combinations that include only one ZZ.
Which leads you, the reader, to the essence of this text.
The problem with the WXY-XZ notation is that it mixes up some of the opposites of the logical spectrum by uniting them under its name, creating confusion and a range of possible mistakes during analytical work.
5 ON PRACTICE
The misunderstanding and labeling of the DZZ and TZZ as WXY(XZ) without paying attention to the difference and not specifying it on the chart, can lead to the following problems.
In wave B or wave 4 position, marking TZZ as WXYXZ would make you think the correction is over, when the sequence could easily turn into the wave A of a flat or HT, or the 1st of the leading diagonal after.
By labeling the DZZ of the wave 2 of regular impulse as WXY, you would expect a quicker simple correction in the position of wave 4 to alternate it, when a longer complex correction is likely to occur there.
By attaching the WXY(XZ) labeling to DZZ & TZZ, you would need to spend mental energy to understand what is meant by it every time you review the charts, which stacks if follow over 20 or even 10 charts.
6 SOLUTION
Now that you can't help but see all this, want to avoid the WXY(XZ) trouble and, above all, begin to differentiate in your mind all the corrective combinations into complex corrections or the ZZ derivatives, there are solutions.
Leave the multiples of ZZ simply as ABCXABC(XABC). Avoid prematurely labeling ZZ as W where it is wise to expect another ZZ to follow, such as in wave 2, but mark it as W in the position of wave B or wave 4.
Introduce exclusive labels for DZZ and TZZ—e.g., PQR(QS)—as yours truly does.