CMT Elliott Wave Theory 2

Question 1

What are the three basic categories of simple corrective patterns in Elliott Wave Theory?

Accepted Answer

Zigzags, flats, and triangles

Answer

Flags, pennants, and wedges

Answer

Head and shoulders, double tops, and double bottoms

Answer

Channels, broadening formations, and wedges

Question 2

In a zigzag (5-3-5) corrective pattern, what is the internal sub-wave structure of Waves A, B, and C respectively?

Accepted Answer

A=5, B=3, C=5

Answer

A=3, B=5, C=3

Answer

A=3, B=3, C=3

Answer

A=5, B=5, C=5

Question 3

What primarily distinguishes a flat correction from a zigzag in Elliott Wave Theory?

Accepted Answer

Wave B in a flat retraces approximately 90–100% of Wave A, and Wave C ends near Wave A's terminus

Answer

A flat has five waves while a zigzag has three

Answer

A flat only occurs in Wave 2 while a zigzag only occurs in Wave 4

Answer

A flat retraces more of the prior trend than a zigzag

Question 4

How many sub-waves (labeled A through E) does a contracting Elliott Wave triangle contain?

Accepted Answer

5 sub-waves

Answer

3 sub-waves

Answer

4 sub-waves

Answer

7 sub-waves

Question 5

What is the internal sub-wave character of each leg within an Elliott Wave triangle?

Accepted Answer

Each leg is a 3-wave corrective structure

Answer

Each leg is a 5-wave impulse

Answer

Each leg is itself a triangle

Answer

Legs alternate between 5-wave and 3-wave

Question 6

What market behavior typically follows an Elliott Wave triangle pattern?

Accepted Answer

A thrust move in the direction of the larger trend

Answer

Another triangle of larger degree

Answer

A complex combination correction

Answer

A sharp reversal against the prior trend

Question 7

What is a 'double three' (W-X-Y) or 'triple three' (W-X-Y-X-Z) in Elliott Wave Theory?

Accepted Answer

Complex corrections combining two or three simple corrective patterns connected by X waves

Answer

A wave with one corrective pattern repeated three times consecutively

Answer

Three consecutive impulse waves forming a single trend

Answer

A correction that retraces exactly three Fibonacci levels