The concept of the x-wave is often misunderstood in Elliott Waves Theory. Elliott’s intention was to create a logical process to explain market moves; all of them! He started by dividing moves into impulsive and corrective moves, but there is much more to the Elliott Waves Theory. There are various types of corrective waves, that form far more often than impulsive waves, and the key to understanding them is the x-wave. Even the name should tell you this is always a corrective wave. Why? Well, it is labelled with a letter and, as we know, Elliott used letters to label corrective waves and numbers to label impulsive ... (full story)