The Elliott Wave Triangle Structure

By: Elliottwave-Forecast | Tue, Apr 7, 2015
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Triangle is an Elliott wave pattern seen during sideways market consolidations, it is composed of 5 corrective sequences. Triangle presents a balance of forces between buyers and sellers, causing a sideways movement that is usually associated with decreasing volume and volatility. This pattern subdivide into 3-3-3-3-3 structures labeled as A, B, C, D, E.

Triangle is continuation pattern which breaks in direction of the preceding move. It could occur in wave 4 in an impulsive structure, wave B in a zig-zag and wave X connector in double and triple threes Elliott wave structures. It could also occur in wave Y of a WXY structure in which case it marks the end of correction.

Idealized Elliott Wave Triangle Pattern

Note: Triangle must be supported in RSI indicator as well and it never happens in wave 2 of impulsive structure.

Many wavers ignore the importance of decreasing momentum in a triangle formation. We at EWF use RSI to filter out other types of sideways consolidations. We like to see contracting formation in RSI as well when looking at a triangle formation.

The following chart shows how Elliott Wave Triangle looks like in real market.

$GOLD 2.6.2015 update: (X) connector has done as Triangle structure, which is composed of 5 waves A, B, C, D, E. All of them are corrective structures and each one is shorter than previous one. Target area for ending point of triangle is usually 61.8-76.4 Fibonacci retracement of wave C or 61.8-76.4 Fibonacci extension of C related to D.

Gold Triangle Elliott Wave Analysis Chart
Larger Image

After wave E retraced toward 61.8-76.4 fib zone, we got sharp decline in direction of previous trend. When the price broke below D low, we got confirmation that Triangle has ended at 1268.62.


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Author: Elliottwave-Forecast

Elliottwave-Forecast (by EME PROCESSING AND CONSULTING LLC) was founded in 2005 by Eric Morera. Since inception our company has provided tailored Financial Market Services to thousands of clients.

ElliottWave-Forecast has built a reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, cycles, proprietary pivot system, we provide precise forecasts with up-to-date analysis for 41 instruments including FX majors, Gold, Silver, Copper, Oil, TNX and major Equity Indices. Our clients also have immediate access to our proprietary actionable trade setups, market overview, 1 Hour, 4 Hour, Daily & weekly wave counts. Weekend webinar, Live Screen Sharing Sessions, Daily Technical Videos, Educational Resources, and 24 Hour chat room where they are provided live updates and given answers to their questions.

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