Expanded Flat

A type of flat correction where wave B achieves a new high above wave A’s origin. Wave C will follow, in five waves and it will end beyond wave A’s end. Oftentimes, it’s a difficult wave to trade for many because the new high in wave B appears to be a breakout. Then, wave C’s sharp five-wave decline appears to mean that the larger trend has turned lower, even though it is the end of a corrective pattern.