Friday, November 9, 2012

Elliott wave pattern: Triangle

Elliott wave pattern: Triangle

it is correction pattern
Seen in wave 4 , but can be seen in wave 2 also
Consist of five wave abcde


Types:



  1. Contracting triangle
  2. Expanding triangle


1. Contracting triangle:



Description

A triangle is a corrective pattern, which can contract or expand. Furthermore it can ascend or descend. It is composed of five waves, each of them has a corrective nature.

Rules and guidelines
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 all waves of the diagonal have a corrective wave structure.
o In a contracting Triangle, wave 1 is the longest wave and wave 5 the shortest. In an expanding Triangle, wave 1 is the shortest and wave 5 the longest.
o Triangles normally have a wedged shape, which follows from the previous.
o As a guideline the internal wave structure should show alternation.

In which wave

Triangles occur only in waves B, X and 4. Never in wave 2 or A.

Internal structure

It is composed of five waves, of which the internal structure is 3-3-3-3-3.

2, Expanding triangle:






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