It is rather important to differentiate the many objects found during an active analysis process, as those might prove further useful in locating the appropriate sections of the correct trajectory for financial success. One of the elements found in the Elliott Wave Theory is the flat, which is a corrective waves of sorts that appears to be very much like a zigzag but proves quite different in the pattern structure as well as the level of retracement.

Defining flat

It would be important to note that the retracement should not go further than the 61.8% within the same instance, whereas the structure is expectant to become of similar form to the b wave and complete before the flat occurs thereafter. A b wave that retraces between the ratio of 61.8-81% would be called as weak, whereas the 81-100% is just a normal b wave. Those retracing over 100% are going to be strong b waves, providing several different types of such flats, being the running, double failure, b failure, c failure, common and irregular.

The flat would also come within a simple structure of 3-3-5, making the three consecutive waves to form correctively during an impulse movement. Deciding whether a flat option would provide sufficient enough data to retrace is also mandatory before submitting any course into the executing of such positions, as those might similarly be like the ones submitted before the time. The right decision to make whether to buy put or call options will also be found after the first two waves, which introduces the complete course of a flat in the same order.