# R.N. Elliott’s ‘Slanting Flat’ Pattern – GBP/USD

There’s a variation to the corrective ‘FLAT’ pattern that R.N. Elliott documented which causes some confusion in identification. Fortunately, it’s quite rare though. It’s called a ‘SLANTING FLAT’. Like the ‘horizontal’, ‘running’ and ‘expanding’ flat’s it subdivides the same, as a 3-3-5 sequence but with some slight differences.

In a horizontal flat, waves A-B-C oscillate within almost-exact horizontal/parallel lines – in an expanding flat, wave A establishes an initial trading range, but waves B and C marginally exceed wave A upon completion – and finally, the running flat where waves A and B conform to the same movements as the expanding flat except that wave C falls short of ending towards the completion of wave A – see fig #1.

But the ‘SLANTING FLAT’ is a bit of a hybrid of these other patterns. Wave A establishes the trading range-extremity whilst subdividing into a three wave zig zag (can also unfold into a double/triple zig zag). But when wave B begins to unfold, it doesn’t equal or break above the original level of wave A – rather, it falls short. It does subdivide into a three wave zig zag though (can also unfold into a double/triple zig zag). Here’s the interesting bit – the next sequence as wave C unfolds into a five wave impulse pattern and it exceeds the completion of wave A. Sounds simple enough, but here’s the ‘rub’ – how can this be differentiated between a developing double zig zag pattern, i.e. A-B-C-X-A-B-C, 5-3-5-X-5-3-5? The same subdivisions for the ‘slanting flat’occur up until the sequence A-B-C-X-A...waves B-C are missing.

There’s only one certain way to differentiate between a completed ‘slanting flat’ and a developing double zig zag and that’s cross-referencing the pattern with other contracts/markets – there’s a good chance the pattern is unfolding differently but is less ambiguous.

GBP/US\$

For what it’s worth, GBP/US\$ has just completed a real-time ‘SLANTING FLAT’ pattern – see fig #2. R.N. Elliott’s original template is inserted top-right. Labelled in minuette degree, [a]-[b]-[c], note that wave [a] subdivides into a required zig zag ending at 1.3980 and how wave [b] doesn’t quite make it to wave [a]’s origin of 1.4345 instead ending short at 1.4278 (a retracement of 81.6%). In reality, the 1.4278 high could have ended wave [x] within a developing double zig zag. The following five wave impulse decline to 1.3836 is labelled as ending wave [c] of the slanting flat but could be mistaken for wave [a] within a secondary zig zag. A comparative look at the Euro/US\$ confirms the slanting flat because it has synchronously completed a double zig zag at the same time GBP/US\$ traded to 1.3836.

Fib-Price-Ratios

Our proprietary use of fib-price-ratios also comes in useful in verifying the completion of a slanting flat rather than a developing double zig zag pattern. Extending wave [a] by a fib. 38.2% ratio projects a terminal low for wave [c] to 1.3843+/-, the actual low was 1.3836.

Conclusion

Yes, it is still possible to conclude the following rally from 1.3836 to 1.4067 in GBP/USD is wave [b] of the secondary zig zag within a double formation but again, analysis must be cross-referenced to other positively-correlated contracts/markets.

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WaveTrack International and its related publications apply R.N.Elliott's "The Wave Principle" to historical market price activity which categorises and interprets the progress of future price patterns according to this methodology. Whilst it may be reasonable to deduce a course of action regarding investments as a result of such application, at no time or on any occasion will specific securities, futures, options or commodities of any kind be recommended for purchase or sale. Publications containing forecasts are therefore intended for information purposes only. Any opinion contained in these reports is only a statement of our views and are based on information we believe to be reliable but no guarantee is given as to its accuracy or completeness. Markets are volatile and therefore subject to rapid an unexpected price changes. Any person relying on information contained in these reports does so at their own risk entirely and no liability is accepted by WaveTrack in respect thereof. © All rights are copyrights to WaveTrack. Reproduction and / or dissemination without WaveTrack's prior consent is strictly forbidden. We encourage reviews, quotation and reference but request that full credit is given.

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