Elliott Wave Forecast Team
ElliottWave-Forecast.com
In the video below, we explain the wxy Elliott Wave structure, often called a double three, double correction, or 7 swing Elliott Wave structure. We also compare this wxy structure with abc structure, explaining the similarities and differences.
Double Three Eliott Wave Structure (WXY)
A double three structure, or also called a double correction, or WXY is a 3 waves corrective structure where the third leg (wave Y) is usually 100% – 123.6% of the first leg (wave X) and not more than 161.8%. The subdivision of wave W is in 3 waves, and the subdivision of wave Y is also in 3 waves, thus it is a 3-3-3 structure.
Zig-zag Elliott Wave Structure (ABC)
A zig-zag Elliott Wave structure (ABC) is very similar to WXY. It's also a 3 waves structure and the third leg (wave C) is usually 100% – 123.6% of the first leg (wave A), and not more than 161.8%. The difference between the two is in the internal subdivision of the first leg and third leg. In ABC, the subdivision of wave A is in 5 waves and the subdivision of wave C is in 5 waves.
Wavers tend to be familiar only with ABC and label every 3 waves move as ABC. In reality, unless the subdivision of the first leg and third leg is in 5 waves, it's wrong to label every 3 waves move as an ABC. We hope that this video and article helps to clarify the differences and when to label as WXY and when to label as ABC.
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Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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