Free Lesson from Jeffrey Kennedy's Trader's Classroom

The Wave Principle classifies price action as either motive or corrective. Corrective waves move opposite the direction of the primary trend and include the zigzag, flat, triangle and combinations of these patterns. They offer traders an opportunity to rejoin the larger trend. Today, you can watch a lesson from Jeffrey Kennedy's Trader's Classroom in which he teaches you the basics of the triangle, a sideways correction, and shows an example in the chart of Pfizer, Inc. (PFE).

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This article was syndicated by Elliott Wave International and was originally published under the headline Reviewing the Basics of the Elliott Wave Principle: The Triangle. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.