Ending diagonal structure
A couple weeks ago i have identified Diagonal at TOTAL chart 8d TF.
Now i managed to recognize it on BTC. Diagonal structures are found at the termination points of larger patterns, indicating exhaustion of the larger movement. Ending diagonal often ends in a throw-over, ie, a brief break of the trendline connecting the end points of waves one and three.
A rising ending diagonal is usually followed by a sharp decline retracing at least back to the level where it began and typically much further. A falling ending diagonal by the same token usually gives rise to an upward thrust. Fifth wave extensions, truncated fifths and ending diagonals all imply the same thing: dramatic reversal ahead.
Now i managed to recognize it on BTC. Diagonal structures are found at the termination points of larger patterns, indicating exhaustion of the larger movement. Ending diagonal often ends in a throw-over, ie, a brief break of the trendline connecting the end points of waves one and three.
A rising ending diagonal is usually followed by a sharp decline retracing at least back to the level where it began and typically much further. A falling ending diagonal by the same token usually gives rise to an upward thrust. Fifth wave extensions, truncated fifths and ending diagonals all imply the same thing: dramatic reversal ahead.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.