Secrets of the Triangle Pattern

in Elliot wave theory A triangle is a modified pattern consisting of five waves labeled A, B, C, D, and E that move sideways. Triangles can shrink or expand. and is characterized by a decrease in volume and volatility as the pattern progresses.

A contraction triangle occurs when each successive wave forms smaller than the previous wave. This results in a trendline convergence. Conversely, a expanding triangle forms when each successive wave is larger than the previous one. This results in trend line divergence.

Triangles are generally found in the fourth wave location. which is a corrective wave And Triangles can form in B wave of Zigzag, X wave of WxY and Y wave in Double Corrective. Triple Corrective(WxYxZ) can only appear in second X and in Z wave. Always the last wave

The specialty of the triangle pattern is that we can use it to predict both the price target and the end of the next wave series, for example:

When the triangle pattern is completed The next wave is usually the same length as The length behind the triangle pattern, which we call Post-Triangle Thurst

• It is a measure of the driving force of the Traingle pattern which we can use to predict the next set of price targets. By drawing a trendline connecting the endpoints of waves B-D and A-C and measuring the width from the beginning of wave A to the A-C trendline, we can get the target price of the next wave series. measured from the end of the E wave.

• The Apex Triangle or the end of the Triangle usually coincides with the end of the next series of waves. which can be used to predict the timing of the next wave as well

Triangles are often difficult to identify and trade. It can easily be confused with other editing styles such as zigzags and flats. It is important to carefully analyze the wave structure and use additional technical indicators to confirm the pattern before making a trading decision.

Kittiampon Somboonsod, CEWA