An Elliott Wave combination correction is a complex corrective pattern in Elliott Wave Theory, typically formed when simpler corrective patterns combine to create a larger, more intricate structure. It consists of two or three corrective waves labeled W, X, Y.
Combination corrections aim to extend and complicate the corrective phase, often seen in sideways or consolidative price action. They provide a way for markets to consume time and create balance before resuming the primary trend.
Key Characteristics:
The larger trend of the correction labelled as W,X,Y consists of 3 corrective wave structures being 2 Zig Zags, and and ending symmetrical triangle labeled A,B,C,D,E.
Each major corrective structure ends with a 3 wave impulse move to the downside, followed by a 2 wave corrective structure before resuming the trend.
You can see more detail on EW theory related to elliot wave combination structures on the website: elliottwave.com/waveopedia/combinations/
What catches my attention for this up coming week is a potential end to the corrective structure on the NQ (Nasdaq Futures), as the compression in price may see a final bounce at "E" for the breakout back towards the ATH.
Only time will tell