Double Zigzag
A double zigzag is a complex corrective pattern made up of two zigzag formations connected by a Wave X in between. It's labeled W-X-Y, where both W and Y are individual zigzags (each with their own A-B-C structure). The Wave X connects them and typically retraces 50% to 78.6% of the first zigzag. The market produces a double zigzag when a single zigzag hasn't corrected enough in price to satisfy the requirements of the larger pattern. The result is a steeper, deeper correction than a single zigzag alone would produce. You see double zigzags most often in Wave 2, Wave A, or as the entire corrective wave at a given degree. They can be tricky because after the first zigzag completes, it looks like the correction is over. The X wave rally reinforces that false impression before the second zigzag drops prices further. Recognizing that the first decline subdivides cleanly as a zigzag and that the bounce is only a three-wave X wave helps you avoid buying too early.
The euro drops against the dollar in Wave 2. The first zigzag (W) takes EUR/USD from 1.1200 to 1.0850. An X wave bounces to 1.1050. Then the second zigzag (Y) drops to 1.0600. The total decline is much deeper than the first zigzag alone, reaching a 78.6% retracement of the prior Wave 1 advance.