# Double Three Elliott Wave

The Elliott Wave Theory is a popular approach that aims to predict future market movements. Among the many patterns within this theory is the Double Three Elliott Wave, which is a corrective pattern formed by the combination of three correction patterns. In this article, we will delve into the workings of the Double Three Elliott Wave and explore how it can be used to make better trading decisions.

## What is the Double Three Elliott Wave?

The Double Three Elliott Wave Structure is a common corrective pattern in Elliott Wave Theory, that combines two corrective patterns in a sideways combination. While there are several corrective patterns such as zigzag, flat, and triangle, the double three is a unique structure that adds complexity to the overall wave count.

A Double Three Elliott Wave Structure is composed of two corrective patterns that are combined to create a seven-swing structure. The W and Y subdivisions can be zigzag, flat, or double three of a smaller degree or even triple three of a smaller degree. Wave X, on the other hand, can be any corrective structure.

The Double Three Elliott Wave Structure is considered a corrective pattern because it typically occurs after an impulsive wave, which is a five-wave structure that moves in the direction of the larger trend. This corrective pattern is characterized by a complex sideways movement, which can make it difficult for traders to identify and trade. However, with proper analysis and understanding of the pattern, traders can use the Double Three Elliott Wave Structure to make informed trading decisions.

## Double Three Elliott Wave Strategy

The Double Three Elliott Wave is a corrective pattern that is formed by the combination of three correction patterns. It consists of three waves that are marked W-X-Y, where wave W could be any corrective pattern except triangles. Waves X and Y could take the form of any correction pattern. This pattern is formed horizontally or with a low dip against the main trend, and in most cases, it is not a deep correction.

It is important to note that a correction can only be counted as a Double Three when the structure is almost over. Therefore, it is not possible to predict this pattern from the very beginning of a correction. Only when a structure that fits the Double Three’s rules arrives, we can decide to mark this pattern.

When we have just finished wave X, there are always several ways to finish the correction. It could take the form of an impulse, resulting in a flat correction, or a long zigzag, resulting in a double zigzag correction. However, if we have a small zigzag, then we could consider the possibility of a double three pattern.

To trade using the Double Three Elliott Wave pattern, it is important to identify when the structure is almost over. Once the pattern is confirmed, we can look for entry points and set stop loss orders accordingly. We can open a long position if the Double Three pattern is bullish and a short position if it is bearish. The stop loss should be set a few pips below the entry point for long positions and a few pips above the entry point for short positions.

• Wait for the completion of the Double Three Elliott Wave pattern, and ensure that it is a bullish pattern.
• Look for a bullish candlestick pattern to form at the end of wave Y.
• Once a bullish candlestick pattern is identified, enter a long position at the close of the candle.
• Set the stop loss a few pips below the low of the entry candle.

## Sell Signal

• Wait for the completion of the Double Three Elliott Wave pattern, and ensure that it is a bearish pattern.
• Look for a bearish candlestick pattern to form at the end of wave Y.
• Once a bearish candlestick pattern is identified, enter a short position at the close of the candle.
• Set the stop loss a few pips above the high of the entry candle.

## Double Three Elliott Wave Pros & Cons

### Pros

• Double Three Elliott Wave provides traders with a clear structure for corrective patterns.
• The pattern allows for the identification of potential entry and exit points in the market.
• The pattern can be applied across multiple markets and timeframes.

### Cons

• The pattern is difficult to predict in the early stages of a correction.
• There are multiple ways to complete the correction, which can lead to confusion for traders.
• The pattern requires significant knowledge and experience to apply effectively.

## Conclusion

In conclusion, the Double Three Elliott Wave pattern is a pattern that traders can use to identify potential entry and exit points in the market. This corrective pattern is formed by the combination of three correction patterns, namely W-X-Y, where wave W can be any corrective pattern except triangles, and waves X and Y can take the form of any correction pattern.

While there are some disadvantages associated with using the Double Three Elliott Wave, such as its complexity and the need for careful analysis, its many advantages make it a considerable tool for traders.