EURUSD: Contracting Triangle In Progress; Bullish Break In View-Elliott Wave Analysis

By: Gregor Horvat | Mon, Sep 30, 2013
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EURUSD accelerated to the upside in the last few hours from the lower side of a trading range. As such, with the latest time we see triangle as the best labeling in wave four, but we still need wave (e) before pattern is complete. Ideal support zone for end of wave (e) comes in at 1.3490-1.3510 region. If we are correct then we will see more impulsive ride on Euro in this week.

EURUSD 1h Elliott Wave Analysis

EURUSD 1-Hour Chart

Triangle Elliott Wave Pattern.

Triangle Pattern is a common 5 wave patterns. Generally Triangle is labeled A-B-C-D-E that moves in counter-trend. Triangle is corrective in nature. Mostly triangles move within two channel lines drawn from waves A to C, and from waves B to D.

In Elliott Wave Patterns, a Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding.

If the channel lines are converging, then the Triangle is called Contracting Triangle. And the channels line are expanding then this type of Triangle is called Expanding Triangle.

Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Contracting triangle

Contracting Triangle Text Book Example Chart
  • Contracting Triangle has 3-3-3-3-3 wave structure.
  • Each subwave of a triangle is usualy a zig-zag
  • Wave E must end in the price territory of wave A
  • One subwave of a triangle usually has a much more complex structure than others subwaves
  • Contracting Triangle appears in;
    • Wave four in an impulse wave
    • Wave B in an A-B-C Correction
    • Wave X or wave Y in a double threes
    • Wave X or wave Z in a triple threes

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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