Triangle

Contracting & Barrier Triangle

Rules

  • A triangle subdivides into 5 corrective waves
  • Wave C does not move beyond wave A, wave D does not move beyond wave B, and wave E does not move beyond wave C
  • A triangle has never more than one complex subwave
  • A complex wave within a triangle can be only a zig-zag combination or a triangle
  • At least 4 out of 5 waves subdivide into zigzags or zigzag combinations.

Guidelines

  • Usually wave C,D, or E may subdivide into a barrier or contracting triangle
  • A triangle within a triangle results into an „extended“ triangle, which appears to have 9 waves
  • Usually, wave C lasts longer and retraces a deeper percentage that the other subways
  • Sometimes wave D lasts longer and retraces a deeper percentage that the other subways
  • The B-wave of a „running triangle“ ends sometimes beyond the start of the A-wave
  • A barrier triangle extends very rarely
  • Strength indicators usually contract within a triangle pattern that is not an expanding triangle
  • Triangles usually show decreasing volume, interest, and volatility if they are not expanding
  • Usually, wave E shows a triangle pattern if a paramount triangle structure extends
  • The fifth wave in equities after a triangle resolution is roughly equidistant to the largest triangle fractal
  • The fifth wave in commodities after a triangle resolution is usually the longest wave

Expanding Triangle

Rules

Same rules as for contracting and barrier triangles with the following difference:

  • Waves B,C, and D retrace between 100%-150% of the previous subwave

Guidelines

Same guidelines as for contracting and barrier triangles with the following difference:

  • Waves B,C, and D usually retrace between 105%-130% of the previous subwave
  • Expanding triangles almost never extend

Technical Analysis