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

Elliott Wave corrective patterns fall into three basic categories — zigzags, flats, and triangles — which can combine into complex corrections.

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 zigzag is a 5-3-5 structure where Wave A subdivides into 5 waves, Wave B into 3 waves, and Wave C into 5 waves.

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

In a flat, Wave B retraces approximately 90–100% of Wave A and Wave C ends near or at Wave A's end, creating a 'flat' sideways structure versus the sharper zigzag.

Question 4

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

Accepted Answer

5 sub-waves

Answer

An Elliott Wave contracting triangle contains 5 sub-waves labeled A–B–C–D–E, each of which is itself a three-wave corrective structure.

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 of the five legs (A–E) in an Elliott Wave triangle is a three-wave corrective structure, making the full triangle a 3-3-3-3-3 pattern.

CMT - Chartered Market Technician Practice Test

CMT - Chartered Market Technician Practice Test

CMT Elliott Wave Theory 2