A Triangle is a common 5-wave corrective pattern labelled A-B-C-D-E that moves counter-trend. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either Contracting (CT) or Expanding (ET) depending on whether the channel lines are converging or expanding. Expanding Triangles are rare.
Contracting Triangle (CT)
Internal structure and the most common shape for a rising Contracting Triangle (CT), Elliott wave pattern
Internal structure and the most common shape for a falling Contracting Triangle (CT), Elliott wave pattern
Rules and guidelines for identifying and labeling a Contracting Triangle (CT) pattern
1) Wave A can only be a Zigzag, Double or Triple Zigzag, or a Flat pattern.
2) Wave B can only be a Zigzag, Double or Triple Zigzag pattern.
3) Wave C and D can be any corrective pattern except a Triangle.
4) Waves A, B, C and D must move within or close to within the A-C & B-D channel lines.
5) The intersection of the channel lines must occur beyond the end of Wave E.
6) The channel lines must converge. They cannot be parallel.
7) One of the channel lines may be horizontal.
8) Wave E can be a Zigzag, Double or Triple Zigzag, or a Contracting Triangle.
9) Wave E must be less than Wave D by price, and Wave E must be more than 20% of Wave D by price.
10) Either Wave A or Wave B must be the longest wave by price.
11) Wave E must end in the price territory of A.
12) Wave E must move within or close to within the B-D channel line.
Expanding Triangle (ET)
Internal structure and the most common shape for a rising Expanding Triangle (ET), Elliott wave pattern
Contracting Triangle (CT)
Internal structure and the most common shape for a rising Contracting Triangle (CT), Elliott wave pattern
Internal structure and the most common shape for a falling Contracting Triangle (CT), Elliott wave pattern
Rules and guidelines for identifying and labeling a Contracting Triangle (CT) pattern
1) Wave A can only be a Zigzag, Double or Triple Zigzag, or a Flat pattern.
2) Wave B can only be a Zigzag, Double or Triple Zigzag pattern.
3) Wave C and D can be any corrective pattern except a Triangle.
4) Waves A, B, C and D must move within or close to within the A-C & B-D channel lines.
5) The intersection of the channel lines must occur beyond the end of Wave E.
6) The channel lines must converge. They cannot be parallel.
7) One of the channel lines may be horizontal.
8) Wave E can be a Zigzag, Double or Triple Zigzag, or a Contracting Triangle.
9) Wave E must be less than Wave D by price, and Wave E must be more than 20% of Wave D by price.
10) Either Wave A or Wave B must be the longest wave by price.
11) Wave E must end in the price territory of A.
12) Wave E must move within or close to within the B-D channel line.
Expanding Triangle (ET)
Internal structure and the most common shape for a rising Expanding Triangle (ET), Elliott wave pattern
Internal structure and the most common shape for a falling Expanding Triangle (ET), Elliott wave pattern
Rules and guidelines for identifying and labeling a Expanding Triangle (ET) pattern
1) All five waves must be Zigzag, Double or Triple Zigzag patterns.
2) Wave B must be shorter than Wave C by price, but more than 40% of Wave C by price.
3) Waves A, B, C and D must move within, or close to within, the A-C & B-D channel lines.
4) Wave C must be shorter than Wave D by price, but more than 40% of Wave D by price.
5) Wave A must move within, or close to within, the A-C channel line.
6) The intersection of the channel lines must occur before the beginning of Wave A.
7) The channel lines must diverge. They cannot be parallel.
8) Neither channel line may be horizontal.
9) Wave E must be longer than D but less than 40% of Wave E by price.
10) Either A or B will be the shortest wave by price.
11) Wave E must end in the price territory of A
12) Wave E must move within, or close to within, the B-D channel line.
Other Posts of Interest
Download - Elliott Wave Calculator
Elliott wave pattern - Impulse (IM), Internal structure, Rules and Guidelines
Elliott wave pattern - Diagonal [Leading (LD) and Ending (ED)], Internal structure, Rules and Guidelines
Elliott wave pattern - Zigzag (ZZ), Double Zigzag (DZ), Triple Zigzag (TZ), Internal structure, Rules and Guidelines
Elliott wave pattern - Flat (FL), Double Sideways (D3), Triple Sideways (T3), Internal structure, Rules and Guidelines
Other Posts of Interest
Download - Elliott Wave Calculator
Elliott wave pattern - Impulse (IM), Internal structure, Rules and Guidelines
Elliott wave pattern - Diagonal [Leading (LD) and Ending (ED)], Internal structure, Rules and Guidelines
Elliott wave pattern - Zigzag (ZZ), Double Zigzag (DZ), Triple Zigzag (TZ), Internal structure, Rules and Guidelines
Elliott wave pattern - Flat (FL), Double Sideways (D3), Triple Sideways (T3), Internal structure, Rules and Guidelines
Hey AJ!
ReplyDeleteAn honest (and perhaps unwanted) advice .. you SHOULD register for a domain name and get a website of your own .. reason .. you will be able to arrange it better .. You can do the same thing with a blog .. but then its really not the same .. your blog is informative .. but it seems like too much is cramped on every page .. websites as we all know are easy to read, can be maintained better by keeping data in a hierarchical fashion .. and finally ... you shall have a website of your own :)
Ponder on it :)
Hi Saurav,
DeleteThanks for your valuable feedback and suggestions.
One of my friends also insists on a domain, but I feel it will be a hassle. I will do some research regarding hosting, never thought about it seriously :)
You said, "but it seems like too much is cramped on every page"
Can you explain this in some details? Is it a three column blog, with links on left, right and content in the middle or Chat box or google ads that makes you say so or the template and text color that some people find difficult to read?
Once again thanks, keep the suggestions coming, the advice is never "unwanted" :)
Let's put it this way .. I am just not fond of too many links on the same page .. and I am not fond of too much reading material on the same page :)
ReplyDeleteBottom line, the entire thing will be a lot more organized if its a website of your own. And I can give you some preliminary information - all that you need to do is walk up to a service provided and ask for a space of your own - assuming that you have a website ready :) .. If not - you can again walk up to some small IT vendor, give them some basic requirements and you shall have a working model ready in 1-3 months .. I am told that small players charge no more than 15k/annum for upkeep of a 24x7x365 server ... the website building costs is something I am not too sure of! :)
Thanks for a detailed explanation. I will try to redesign the blog with pages on top.
Delete"15k/annum for upkeep of a 24x7x365 server", I would rather use that to buy MININIFTY contract :P, by the way blogger is free. Asking a "kanjoos" trader to spend money? My relationship manger had a difficult time negotiating with me, 5 have already quit the job, branches in Dehradun have been closed or transfered :))
Website designing I guess cost 30K - 50K, but it depends on how complex one wants it to be. I have got you point I will try to do away with right column and create pages on top bar. Do give your feedback after the changes apply :)
Thanks again.
Hi AJ,
Deletethank you a very good explanation of the EW in your BLOGs.
Have you considered producing an Ellit Wave INDICATOR for eSIGNAL 11 charting package similarto the EW PROPHET by SCIENTIFIC FOREX for MT4 platform. With your knowledge of the EW you could produce thuis indicator which would be widely used by eSignal users thus enabling youy to reach a wider market for the product.
keep up the good work
BJ
Hi BJ,
DeleteOver the years I have always looked to simplify my approach to markets. I just follow price now. EW is more of predictive approach. I do breakout trend following mostly. I have never used MT4 or esignal. I also don't want to reach a "wider market", want to remain a lonely trader :)
Dear AJ,
ReplyDeleteThis character that thinks you should get a domain name pay thousands for web site development and even more thousands for maintaining...he reminds me of a fresh vegetable stand just down the road from my place. It was a wonderful open air market with a stoned parking lot surrounding a large tent - all well maintained. It was a great place to meet all kinds of people as the parking lot had 10 to 20 cars and sometimes more all day long every day of the week. It became so popular it was an area landmark.
The guy who ran it made so much money (and the produce was cheaper than any where around) that he finally decided after several years to "do it right" and put up a building. He put up this big beautiful building, asphalted the parking lot...all done very nicely.
Nobody came. His business went completely to hell. Why? Because it just wasn't the same as his wonderful open air market. Let that be a lesson. Best wishes for continued success. You have a great site here and there is absolutely NOTHING wrong with this site and the read-ability is just fine. Best wishes for continued success.
QuickRick
Thanks for the "best wishes". Earlier this site had a black background with white colored text. Some people found that template difficult to read. That is why I have changed to this default template, with light background and black colored text. :)
Delete