đź“ŤPart 5: Corrective Waves - Simple - Triangle.
Hello!
➡️In this lecture, we will cover one of the most common or popular correction options - triangles. I remind you that we are now considering various correction structures that are encountered both separately and can be part of more complex structures.
➡️Triangles are probably the most popular pattern for all beginners, yes, and not only beginners. It is quite often seen on the chart and most likely everyone tried to trade it according to classical recommendations, for example from books or a course, when essentially everything comes down to breaking dynamic resistance on one of the sides where you buy or sell.
➡️In history, everything looks pretty harmonious as usual, but in real-time, it turns out to be not that simple, and here maybe just the rules from wave analysis will help to avoid a certain number of errors.
➡️So let's take a look at the main rules and guiding norms for triangles!
âś…General Rulesâś…
đź“ŤA triangle always subdivides into five waves.
đź“ŤAt least four waves among waves "a", "b", "c", "d" and "e" are subdivided into a single zigzag.
đź“ŤIn a triangle, only one subwave can be a multiple zigzag or triangle.
âś…General guidelinesâś…
đź“ŤUsually, wave "c" or wave "d" subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves.
đź“ŤAlternating waves of a triangle may be in Fibonacci proportion to each other by a ratio of 0.618 for contracting triangles and 1.618 for expanding triangles. For example, in a contracting triangle, look for wave "c" to equal 0.618 of wave "a".
đź“ŤA triangle can be correction wave "4" in the impuls, wave "b" of a zigzag, wave "x" of a double or second wave of an "x" of a triple zigzag, sub-wave "c", "d" or "e" of a triangle and the last structure of a combination.
âś…Contracting Triangleâś…
Rules
đź“ŤWave "c" never moves beyond the end of wave "a", wave "d" never moves beyond the end of wave "b", and wave "e" never moves beyond the end of wave "c". The result is that going forward in time, a line connecting the ends of waves "b" and "d" converges with a line connecting the ends of waves "a" and "c".
đź“ŤWaves "a" and "b" never subdivide into a triangle.
đź“ŤIn a running contracting triangle, wave "b" should be no more than twice as long as wave "a".
Guidelines
đź“ŤSometimes one of the waves, usually wave "c", "d" or "e", subdivides into a contracting or barrier triangle. Often the effect is as if the entire triangle consisted of nine zigzags.
đź“ŤAbout 60% of the time, wave "b" goes beyond the beyond the start of wave "a". When this happens, the triangle is called a running contracting triangle.
âś…Barrier Triangleâś…
Rules
đź“ŤWave "c" never moves beyond the end of wave "a", wave "d" never moves beyond the end of wave "b", and wave "e" never moves beyond the end of wave "c". The result is that going forward in time, a line connecting the ends of waves "b" and "d" converges with a line connecting the ends of waves "a" and "c".
đź“ŤWaves "b" and "d" end at essentially the same level.
đź“ŤIn a running barrier triangle, wave "b" should be no more than twice as long as wave "a".
Guidelines
đź“ŤAbout 60% of the time, wave "b" goes beyond the start of wave "a". When this happens, the triangle is called a running barrier triangle.
đź“ŤWhen wave "5" follows a barrier triangle, it is typically either a brief, rapid movement or an exceptionally long extension.
âś…Expanding Triangleâś…
Rules
đź“ŤWave "c", "d" and "e" each moves beyond the end of the preceding same-directional subwave. (The result is that going forward in time, a line connecting the ends of waves "b" and "d" diverges from a line connecting the ends of waves "a" and "c.")
đź“ŤSubwaves "b", "c" and "d" each retrace at least 100 percent but no more than 150 percent of the preceding subwave.
Guidelines
đź“ŤSubwaves "b", "c" and "d" usually retrace 105 to 125 percent of the preceding subwave.
➡️In this lecture, we will cover one of the most common or popular correction options - triangles. I remind you that we are now considering various correction structures that are encountered both separately and can be part of more complex structures.
➡️Triangles are probably the most popular pattern for all beginners, yes, and not only beginners. It is quite often seen on the chart and most likely everyone tried to trade it according to classical recommendations, for example from books or a course, when essentially everything comes down to breaking dynamic resistance on one of the sides where you buy or sell.
➡️In history, everything looks pretty harmonious as usual, but in real-time, it turns out to be not that simple, and here maybe just the rules from wave analysis will help to avoid a certain number of errors.
➡️So let's take a look at the main rules and guiding norms for triangles!
âś…General Rulesâś…
đź“ŤA triangle always subdivides into five waves.
đź“ŤAt least four waves among waves "a", "b", "c", "d" and "e" are subdivided into a single zigzag.
đź“ŤIn a triangle, only one subwave can be a multiple zigzag or triangle.
âś…General guidelinesâś…
đź“ŤUsually, wave "c" or wave "d" subdivides into a "multiple zigzag" that is longer lasting and contains deeper percentage retracements than each of the other subwaves.
đź“ŤAlternating waves of a triangle may be in Fibonacci proportion to each other by a ratio of 0.618 for contracting triangles and 1.618 for expanding triangles. For example, in a contracting triangle, look for wave "c" to equal 0.618 of wave "a".
đź“ŤA triangle can be correction wave "4" in the impuls, wave "b" of a zigzag, wave "x" of a double or second wave of an "x" of a triple zigzag, sub-wave "c", "d" or "e" of a triangle and the last structure of a combination.
âś…Contracting Triangleâś…
Rules
đź“ŤWave "c" never moves beyond the end of wave "a", wave "d" never moves beyond the end of wave "b", and wave "e" never moves beyond the end of wave "c". The result is that going forward in time, a line connecting the ends of waves "b" and "d" converges with a line connecting the ends of waves "a" and "c".
đź“ŤWaves "a" and "b" never subdivide into a triangle.
đź“ŤIn a running contracting triangle, wave "b" should be no more than twice as long as wave "a".
Guidelines
đź“ŤSometimes one of the waves, usually wave "c", "d" or "e", subdivides into a contracting or barrier triangle. Often the effect is as if the entire triangle consisted of nine zigzags.
đź“ŤAbout 60% of the time, wave "b" goes beyond the beyond the start of wave "a". When this happens, the triangle is called a running contracting triangle.
âś…Barrier Triangleâś…
Rules
đź“ŤWave "c" never moves beyond the end of wave "a", wave "d" never moves beyond the end of wave "b", and wave "e" never moves beyond the end of wave "c". The result is that going forward in time, a line connecting the ends of waves "b" and "d" converges with a line connecting the ends of waves "a" and "c".
đź“ŤWaves "b" and "d" end at essentially the same level.
đź“ŤIn a running barrier triangle, wave "b" should be no more than twice as long as wave "a".
Guidelines
đź“ŤAbout 60% of the time, wave "b" goes beyond the start of wave "a". When this happens, the triangle is called a running barrier triangle.
đź“ŤWhen wave "5" follows a barrier triangle, it is typically either a brief, rapid movement or an exceptionally long extension.
âś…Expanding Triangleâś…
Rules
đź“ŤWave "c", "d" and "e" each moves beyond the end of the preceding same-directional subwave. (The result is that going forward in time, a line connecting the ends of waves "b" and "d" diverges from a line connecting the ends of waves "a" and "c.")
đź“ŤSubwaves "b", "c" and "d" each retrace at least 100 percent but no more than 150 percent of the preceding subwave.
Guidelines
đź“ŤSubwaves "b", "c" and "d" usually retrace 105 to 125 percent of the preceding subwave.
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