Complex Correction
A complex correction combines two or three simple corrective patterns joined by connecting waves labeled X. The simplest version is a double combination labeled W-X-Y, where W and Y can be zigzags, flats, or triangles in any mix. Triple combinations extend this to W-X-Y-X-Z with a third corrective pattern added. The X wave connects the patterns and typically retraces a significant portion of the preceding pattern. Complex corrections are the market's way of burning time without covering much price distance. They show up when the market needs to correct but lacks the momentum for a sharp decline. You'll see them most often in Wave 4, Wave B, or Wave 2 positions at larger degrees. They're frustrating to trade through because they keep faking breakouts in both directions. The key recognition signal is when a correction seems complete but then keeps going sideways with another corrective pattern attached.
Gold corrects after a strong Wave 3 advance. Wave 4 starts with a flat correction (labeled W), followed by a small X wave rally, then a triangle (labeled Y). The entire W-X-Y structure takes eight weeks and retraces only 23.6% of Wave 3 in price, but it consumes a lot of time. That's a classic double combination.