Elliott Wave ABC Correction Pattern: Counter-Move in Market Trends

In Elliott Wave theory, the ABC correction refers to a three-wave counter-move that occurs after the completion of the main upward trend (usually called waves 1-5). This correction pattern is quite common in digital asset trading, and understanding its structure is crucial for grasping market rhythm.

How do the three stages of the correction unfold? Wave A is the first counter-move, usually quite fierce, containing five smaller waves within. Then comes Wave B, a partial rebound with relatively weaker momentum, consisting of three smaller waves. Finally, Wave C completes the entire correction cycle, forming the final corrective low.

Mastering the wave division of the ABC correction and the characteristics of each stage can help traders more accurately predict support levels and rebound targets, enabling better entry and exit points amid market fluctuations.