Quickly learn how to differentiate a zigzag from two common Elliott Wave patterns
You're not supposed to compare apples to oranges, but I do compare apples to apples: I prefer the classically mellow taste of Red Delicious to the grassy and tart Granny Smith.
It can be a challenge to describe the differences between two similar objects. For example, I'd struggle to tell the difference between Pinot Grigio and Sauvignon Blanc in a taste test (and why I don't try to earn a living as a sommelier).
When it comes to Elliott Wave analysis, it can be difficult to distinguish among technical patterns on a price chart, especially when you're new to trading.
That said, now it's your turn: can you explain how a zigzag compares to other corrective patterns?
Watch this brief clip to learn what the zigzag shape looks like in contrast to the other sideways structures. (Note: If you are interested in getting a strong foundation in the Wave Principle, check out our free Elliott Wave Tutorial -- find out how below.)
To understand corrective Elliott patterns (which move against the larger market trend) is to equip yourself to find opportunities in the direction of the trend. To be a consistently successful Elliott trader, the reality is that you need to be able to identify these forms as easily as a sommelier can distinguish a Malbec from a Chianti.
How do you like them apples?
If you are ready to improve your analysis, take the first step in educating yourself about the basics of the Wave Principle -- access the FREE Online Tutorial from Elliott Wave International.
The Elliott Wave Basic Tutorial is a 10-lesson comprehensive online course with the same content you'd receive in a formal training class -- but you can learn at your own pace and review the material as many times as you like!
This article was syndicated by Elliott Wave International and was originally published under the headline Basic Elliott Video Lesson -- How the Zigzag Measures Up. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.