Double Zigzag / Double Zigzag (W-X-Y)
General reference values based on Elliott Wave Theory. Actual success rates vary significantly depending on market conditions, timeframe, and instrument.
A complex corrective pattern where two zigzag corrections are connected by an X wave. Composed of W-X-Y three waves, where W and Y are each independent zigzag (5-3-5) patterns. The X wave is a 3-wave connecting wave that retraces approximately 38.2-70% of Wave W. It appears when a single zigzag is insufficient, achieving a deeper correction. Characterized by a steep-angle decline persisting over an extended period.
After confirming Wave X's peak, enter short when reversal signals appear at the start of Wave Y's decline. Confirm that Wave W is a complete zigzag pattern and that Wave X's retracement is within the 38.2-70% range of Wave W.
Wave Y's target is equal to Wave W as the basic target. Measure Wave W's length from Wave X's peak to set Wave Y's target. Also reference Fibonacci extensions (61.8%, 100%, 161.8% of Wave W).
Place a stop-loss slightly above Wave X's peak. If Wave X exceeds Wave W's origin, the double zigzag pattern is invalid; exit immediately.
Volume increases during Waves A-C within each zigzag of W and Y. Volume clearly decreases during Wave X. A volume surge in Wave Y's C wave signals correction completion.