Elliott wave pattern - Triangle [Contracting (CT) and Expanding (ET)], Internal structure, Rules and Guidelines

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

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