Elliott ABC Correction — what it is and how to use it in trading
Definition
An Elliott ABC correction is a completed three-wave correction (A down, B up, C down for the bullish variant) that often follows a five-wave impulse and precedes a new move in the trend's direction.
How it works in the builder
elliott_abc_bullish/elliott_abc_bearish are boolean operands with left/right parameters confirming the intermediate A-B-C swings. The signal is 1 on the bar completing wave C — a potential end-of-correction zone.
What it looks like on the chart
On the chart the correction is marked with three waves, A-B-C: a sharp move against the trend (A), a partial bounce (B), and a renewed move against the trend (C), typically close in length to wave A.
Typical use
The completion of wave C is used as a potential entry zone in the direction of the original trend — betting the correction is over and the market will resume. It is often combined with a harmonic pattern or an oscillator divergence for extra confirmation.
Common pitfalls
Like the impulse, an ABC correction is a structural filter, not full wave analysis — it can't tell a simple correction apart from the start of a genuine trend reversal. The signal only fires once wave C has completed, meaning most of the corrective move has already happened.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
Elliott ABC Bullish
Block variants
Elliott ABC Bearish