Waves Gone Wild: Understanding Complex Corrections

Untangling the Mystery of Complex Corrections – A Simple Walkthrough Using CUMMINS INDIA

Ever wondered why the market suddenly becomes messy and confusing after a big rally? Welcome to the land of Elliott Wave corrections, where things aren't always a straight road—but if you know the signs, you won’t get lost.

Let’s break it down using a real chart – CUMMINS INDIA, where we can spot all types of corrections playing out like a drama series.

Step 1: Why Do Corrections Happen?
Corrections mostly show up in Wave 2 and Wave 4, which come after a strong trend (Wave 1 or 3). The job of corrections is simple – to cool things down before the next move.

Step 2: The Simple Ones – Flats and Zigzags
Zigzags (Pattern: 5-3-5):

• Wave A: 5 waves
  
• Wave B: 3 waves (does not cross the start of A)
  
• Wave C: 5 waves, usually equal to or 1.618x of A
  

Zigzags are sharp and directional – like a quick jab.

Flats (Pattern: 3-3-5):

• All about sideways movement.
  
• The B wave often ends near or slightly above/below A’s start – forming what we call expanded flats (hello, double tops and bottoms!)
  
• C wave finishes things off with 5 waves.
  

Flats are more chill – like the market catching its breath.

Step 3: The Slow Builders – Triangles
Triangles are like coiled springs. They’re made of five legs: A-B-C-D-E, all 3-wave moves. These usually show up in:

• Wave 4 of an impulse
  
• Y wave inside complex corrections
  

Think of triangles as the calm before the final push. You’ll often spot them before Wave 5 explodes.

Step 4: When One Correction Isn't Enough – Enter WXY
Imagine the market says, “One ABC correction? Nah, let’s keep going.”
WXY: Two corrections joined by an X wave.

• W = ABC
  
• X = ABC (a connector)
  
• Y = ABC again
  

So it’s like: ABC + ABC + ABC

Step 5: When Even That’s Not Enough – The WXYXZ Beast
Sometimes the market just doesn’t want to move on. So it throws in another ABC.

• WXYXZ:
  
• That’s three ABC corrections, joined by two X waves.
  

If that’s still not enough? (Yes, this happens)
The whole mess becomes just Wave W of another larger correction. Fun, right?

CUMMINS INDIA – The Perfect Textbook Example
In the chart:

• You’ll see flats, zigzags, triangles, all wrapped inside a giant WXYXZ correction.
  
• It spanned months, unfolded in layers, and just maybe, it’s done now.
  
• From April onwards, the move looks impulsive (non-overlapping), hinting at a fresh trend. Or… is it just a big Zigzag in disguise? (C = 1.618 × A, remember?)
  

Only time (and maybe a bit more charting) will tell.

Final Thoughts
There are amazing books, and thousands of charts to study if you’re serious about learning.

"Give a man a fish, he eats for a day. Teach him how to fish, he eats for life."

Trading is the same. Learn the process. Dont chase the calls.

I’m just sharing what I’ve learned with this post. Hope it helps someone out there. Happy charting, and remember—no one is ever 100% right. Stay curious. Stay humble.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.