# Elliott Waves Theory – Trading with X Waves

One of the biggest discoveries Elliott made was to realize corrections are not only simple ones but also complex. As a matter of fact, at least when it comes to the Forex market, we are seeing more complex corrections than simple ones and therefore there is a stringent need for traders to understand how complex corrections are forming. The cornerstone of every complex correction is the x-wave, or the connecting/intervening one, and its role is to build a bridge between two or more simple corrective waves. In reality, there can only be two or three simple corrective waves, and this makes the maximum possible number of x-waves be two.
An x-wave is always a corrective wave on its own, either a simple or a complex one, and should be treated as such. The problem with the x-waves is that traders fail to realize that their structure is of a lower degree. Let me give you an example. Assuming the first correction is a flat, then the move that retraces that flat is actually the x-wave. We do know by now that flat patterns are being labeled as a-b-c, so the x-wave should have the same degree as the first a-b-c. However, we also know that in a flat, waves a and b are corrective, and the c-wave of a lower degree is impulsive. Therefore, a proper count should be (a-b-c) – (a-b-c) – (1-2-3-4-5) for the flat and then the x-wave follows. The structure of this x-wave must be a corrective one of a lower degree, exactly like in the case of the previous flat.

## How to Trade an X-Wave

There are several things a trader can do when it comes to trading an x-wave and they are leading to successful and profitable trades. Sometimes, though, it is more important to be right on the overall pattern and Elliott Waves count than having a profitable trade. It means that future trades will have a greater chance to be on the right side of the market, and this is why the focus should be on the overall analysis and not on any single trade. This is where Elliott Waves works best!

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