Elliott wave pattern- Diagonal( correcting wave pattern)
There are two form of diagonal triangle
1.Diagonal triangle type1/ Ending diagonal triangle
Description
Diagonals are sort of impulsive patterns, which normally occur in terminal waves like a fifth or a C wave. Don’t confuse them with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees, but they do occur often in lower wave degrees on intra-day charts. Usually Diagonal triangles are followed by a violent change in market direction.
Rules and guidelines
The most important rules and guidelines are:
o It is composed of 5 waves.
o Waves 4 and 1 do overlap.
o Wave 4 can’t go beyond the origin of wave 3.
o Wave 3) cannot be the shortest wave.
o Internally all waves of the diagonal have a corrective wave structure.
o Wave 1 is the longest wave and wave 5 the shortest.
o The channel lines of Diagonals must converge.
o As a guideline the internal wave structure should show alternation, which means different kind of corrective structures.
In which wave
Diagonal triangles type 1 occur in waves 5, C and sometimes in wave 1.
Internal structure
The internal structure of the five waves is 3-3-3-3-3.
2,Diagonal triangle type 2/ Starting/leading diagonal triangle
Description
Diagonal type 2 is a sort of impulsive pattern, which normally occurs in the first or A wave. The main difference with the Diagonal Triangle type 1 is the fact that waves 1, 3 and 5 have an internal structure of five waves instead of three. Experience shows it can also occur in a wave 5 or C, though the Elliott Wave Principle does not allow this. Don’t confuse this with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees, but they do occur often in lower wave degrees in intra day charts. These Diagonal triangles are not followed by a violent change in market direction, because it is not the end of a trend, except when it occurs in a fifth or a C wave.
Rules and guidelines
The most important rules and guidelines are:
o It is composed of 5 waves.
o Wave 4 and 1 do overlap.
o Wave 4 can’t go beyond the origin of wave 3.
o Wave 3) cannot be the shortest wave.
o Internally waves 1, 3 and 5 have an impulsive wave structure.
o Wave 1 is the longest wave and wave 5 the shortest.
o As a guideline the internal wave structure should show alternation, which means that wave 2 and 4 show a different kind of corrective structure.
In which wave
Diagonal triangles type 2 occur in waves 1 and A.
Internal structure
The five waves of the diagonal type 2 show an internal structure of 5-3-5-3-5.
for details visithttp://www.elliottwave.com/grpcontent/patterns/diagonals.aspx
There are two form of diagonal triangle
- Diagonal triangle type1/ Ending diagonal triangle
- Diagonal triangle type 2/ Starting/leading diagonal triangle
1.Diagonal triangle type1/ Ending diagonal triangle
Description
Diagonals are sort of impulsive patterns, which normally occur in terminal waves like a fifth or a C wave. Don’t confuse them with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees, but they do occur often in lower wave degrees on intra-day charts. Usually Diagonal triangles are followed by a violent change in market direction.
Rules and guidelines
The most important rules and guidelines are:
o It is composed of 5 waves.
o Waves 4 and 1 do overlap.
o Wave 4 can’t go beyond the origin of wave 3.
o Wave 3) cannot be the shortest wave.
o Internally all waves of the diagonal have a corrective wave structure.
o Wave 1 is the longest wave and wave 5 the shortest.
o The channel lines of Diagonals must converge.
o As a guideline the internal wave structure should show alternation, which means different kind of corrective structures.
In which wave
Diagonal triangles type 1 occur in waves 5, C and sometimes in wave 1.
Internal structure
The internal structure of the five waves is 3-3-3-3-3.
2,Diagonal triangle type 2/ Starting/leading diagonal triangle
Description
Diagonal type 2 is a sort of impulsive pattern, which normally occurs in the first or A wave. The main difference with the Diagonal Triangle type 1 is the fact that waves 1, 3 and 5 have an internal structure of five waves instead of three. Experience shows it can also occur in a wave 5 or C, though the Elliott Wave Principle does not allow this. Don’t confuse this with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees, but they do occur often in lower wave degrees in intra day charts. These Diagonal triangles are not followed by a violent change in market direction, because it is not the end of a trend, except when it occurs in a fifth or a C wave.
Rules and guidelines
The most important rules and guidelines are:
o It is composed of 5 waves.
o Wave 4 and 1 do overlap.
o Wave 4 can’t go beyond the origin of wave 3.
o Wave 3) cannot be the shortest wave.
o Internally waves 1, 3 and 5 have an impulsive wave structure.
o Wave 1 is the longest wave and wave 5 the shortest.
o As a guideline the internal wave structure should show alternation, which means that wave 2 and 4 show a different kind of corrective structure.
In which wave
Diagonal triangles type 2 occur in waves 1 and A.
Internal structure
The five waves of the diagonal type 2 show an internal structure of 5-3-5-3-5.
for details visithttp://www.elliottwave.com/grpcontent/patterns/diagonals.aspx
http://xpert-forex.blogspot.com/2012/11/elliott-wave-pattern-diagonal.html
ReplyDeleteElliott Wave Theory is a method of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies waves identified as impulse waves that set up a pattern and corrective waves that oppose the larger trend.
ReplyDeleteWhat is elliott wave theory?
Elliott Wave Theory is a method of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies waves identified as impulse waves that set up a pattern and corrective waves that oppose the larger trend.
ReplyDeleteelliott wave theory