Futures: Double Zigzag, Single Opportunity6/15/2007 10:08:43 AM
By Nico Isaac
When you hear the word “zigzag,” what images come to mind?
A bolt of lightning
A sewing stitch
The path Paris Hilton’s party wagon takes down Sunset Boulevard
Well, in the world of Elliott Wave analysis, a zigzag is an important corrective pattern, primarily for its ability to earmark the end of an overly extended trend AND onset of a move in a new direction.
As for an official definition of the shape in question, Elliott Wave Principle – Key To Market Behavior delivers the goods in full:
“A zigzag is a simple three-wave pattern labeled A-B-C, in which the top of wave B is noticeably lower than the start of wave A. Occasionally, zigzags will occur twice or at most three times in succession, particularly when the first zigzag falls short of a normal target. In these cases, each zigzag is separated by an intervening “three” or “x”, producing what is called a double (or triple) zigzag.”
Also to bear in mind are these Zigzag Rules to live by:
Wave B NEVER moves beyond the start of wave A
Wave C is often the same length as wave A
Wave C almost always terminates beyond the end of wave A.
Now for the best part: In the June 12 Daily Futures Junctures, editor Jeffrey Kennedy presented this labeled close-up of a major MEATS market that shows a double zigzag at work in real time.

As you can see, the resolution of the zigzag pattern initiated a u-turn to the upside. And, according to Jeffrey Kennedy’s chart, this is just the start of the advance in prices.
So, what are waiting for? Check out the complete Daily Futures Junctures publication today via a risk-free subscription.
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