Sideways Combinations (Double 3’s and Triple 3’s)

Video Transcription:

Hello traders. Welcome to the Elite Way Theory course and the second module, Elite Way Patterns. In this lesson we are going to learn all about sideways combinations which are called double threes and triple threes. Now, let’s start by defining what the sideways combinations are.

Elliot called the sideways combinations of two collective patterns a double three, and a sideways combination of three patterns a triple three. This means that inside a double three, we are going to have two patterns and inside a triple three, we are going to have three patterns. Now, here is an example of what a double three and a triple three looks like and of course this is a very simple way of looking at a double three and a triple three because we are only using flats here.

For example, the ABC flats then we have an ABC flat again. Here we have three ABC flats before a continuation of the move to the outside, but this  is not going to be the case, this is just for you to understand that inside a double three, there are two patterns and their names are ABC and ABC, of course, and of course we have the simple corrective patterns inside the double three which are labeled WXY and inside the triple three there are patterns labeled WXYXZ.

Now, this is how you are going to be labeling the double three and the triple three. But of course you are not going to be looking for a double three that has two flats inside of it. Now the reason is a combination is composed of simple type of collection, zigzags, flats, and triangles okay? Now, normally you are going to have a flat and a zigzag and the combinations is going to end up on a triangle but sometimes you are going to have a flat, a zigzag and another zigzag okay?

Triples 3s and Triple 2s

Now, I’m going to teach you how to look for this inside of an actual chart on the next lesson but for the time being let’s have a look at what’s the appearance of the combination are. Combinations takes a flat appearance; this means that the entire combination is a large flat collective pattern. Now here is an example. Price is going up okay? Then we have a flat corrective pattern okay?

Which is what we have labeled ABC. The end of the flat collective pattern, it is the first move or the first wave of the entire combination which we label W and then we have a zigzag. At the end of the zigzag, we have the second input of the sideways combination which we have labeled X then we have a triangle, you can see here that we have an ABCDE and then a breakout to the outside at the end of the triangle, which is at the point E.

We then have the end of the entire sideways combination which we have labeled Y, okay? Now this might sound a little complicated but it’s actually not that complicated at all. Sometimes you are going to be in a move and you are going to actually see the flats creating and you are going to try to go long here at the C point, because you don’t know if this is going to be just a flat corrective move or a sideways combination. So you are going to be going long then you are going to take your profit at the point B like we did on the lesson for flats and prices is going to come down again.

This means that, we are no longer inside of a flat because price reject at point X and then continue to correct sideways but now inside of a triangle. When you see this happening, okay? You are not going to take any more long positions until you have the third pattern cleared or the third pattern ending at the point E, if it’s a triangle of course and then you are going to take the longer entry for a continuation or the overall trend.

So this is what sideways combinations are and you are going to see that they are more common than you would think and well, they are easily spotted because most of the times we are going to find price already inside of the X-wave or inside of the Y-wave okay? Now on the next lesson, we are going to go to the actual charts and I’m going to teach you how to spot them and how to label them.


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