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Triangle Wave

How to Count Waves Using Chart Patterns?We can count waves using traditional patterns like Head and shoulders, Double Top and Bottom, Triangle, cup & handle, etc. This article is about how you can count waves by identifying chart patterns. I have covered Three chart patterns in this article, 1) Triangles 2) Head and shoulders 3) Double Top and Bottom 1) Head and shoulders: In addition, the two lows formed when the price failed to rise and fell back down were basically at the same level. The horizontal line is often referred to as the "neckline" When the price fails to fall back for the third time neckline will break. So "head and shoulders" was officially established. Changes in volume with head and shoulders: During the formation of "head and shoulders", the left shoulder has the largest volume, the Head has a slightly smaller volume, and the right shoulder has the smallest volume. The phenomenon of diminishing trading volume shows that when the stock price rises, the chasing force is getting weaker and weaker, and the price has the meaning of rising to the end. Operation plan after the Head and shoulders appear: When the head and shoulders formed, you can decisively follow up the short order. The formation of the head and shoulders indicates the beginning of a new round of decline in the market, and the minimum drop is the distance from the head to the neckline. The profit is very substantial. Therefore, studying the formation of the Head and Shoulders is also a necessary analysis process for band enthusiasts. Wave Count: The left shoulder: wave 3/A. The first touch on the neckline: wave 4/B Head: wave 5/C The second touch on the neckline: wave A/1 The right shoulder: wave B/2 The ending point of the right shoulder: wave C/3 2) Triangles: These are the most commonly used triangle patterns. In this motion, we are going to understand the triangle in terms of the Elliot wave. We'll be talking about the classical triangle pattern in an upcoming educational series. Wave Count: A triangle forms in corrective waves. There are Four corrective waves in Elliott wave theory. The corrective waves are 2,4, B, and X. There are four waves in a triangle which are A, B, C, D, E. The starting point of wave A of the triangle is the ending point of impulsive wave 1/3/A/W. After the completion of wave E of wave 1/3/A/W, the Impulsive wave will initiate. 3) Double Tops and Bottom: In the chart, you can sometimes see the stock price fluctuations. The stock price fell back after reaching the highest price. After some sorting, it rose again to near the previous stock price level and then fell back. Two "normally highs" The high point is formed on the circuit diagram and will not be seen again in the short term. Wave Count: In a Bull market, The first Top of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Top and labeled it as A, B, and C waves. In a Bear Market, The first Bottom of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Bottom and labeled it as A, B, and C waves. After wave C is complete, we can ride the impulsive waves.
NASDAQ:TSLAEducation
by forextidings
3
TSLA | TFW Wave Projection Triple Correction - Reversal PatternTesla : Wave projection with a triple combo correction scenario - 1. extended flat 2. zigzig 3. potential a triangle reversal pattern breakout downtrend line. This week is moving below wave b.b.b downtrend baseline, squeezed between ma50w and ma200w - still choosing breakout side. The price could retest and fakebreak ma50w - a possible short entry targeting near the previous liquidity support level. RRR: 2.5:1 Always trade with affordable risk and respect your stoploss!
NASDAQ:TSLAShort
by dukeposh
LINKUSDT Potential Bullish Gartley to turns Bearish / FlatPotential reversal price action in a potential ending diagonal Elliot pattern corrective, plus potential bullish Gartley and AB=CD projections aiming demand zones. The price is ranging @ upper region of a monthly Inside Bar candlestick pattern. I'm expecting the breaking of Aug '22 low to lowers lows newer targets. The price action above this level tends to ranging in zig-zags. Anchored VWAP from the Aug '22 low is a important intraday support. Price is ranging between the upper bands 0.618-1.00 from this VWAP. Bearish divergences on RSI and Chaikin Money Flow oscillators. Similar pattern linked below.
Short
by firmestudio
Forget about chart patterns! Hello, my dear friends and happy New Year! I wish you to be healthy and reach all your goals in trading and not only! Never give up on this difficult way which we are going to overcome together! Today we have a very important topic. How to use Elliott waves instead of classical chart patterns. This is the natural exposure why the chart patterns are garbage. I remember my third year at university when we have the trading lessons. Our teacher gave us a lot of useless knowledges about support, resistance and chart patterns. I have not understood why it should working and it was not soo intereting subject for me. That’s why I returned back to trading much later using self-education. Now I have the clear understanding why Elliott waves is the best tool and why it’s working. Most of traders even don’t understand that chart patterns is just the special case of Elliott waves. That’s why today I decided to explain you how you can change the first one to the second one. Let’s go! Double Top(Bottom) On the chart above I drew the different types of double tops. Generally we have 3 types of this pattern Double top with the second top higher than the first one. In this case we can interpret it in two ways. It could be the classical waves 3, 4, 5 and the corrective wave A at the ending stage. In this case we can anticipate waves B and C. Also it could be the irregular correcton ABC inside wave 4 (rarely in wave 2). In this case we should wait for the wave 5 after that. Traders usually execute short position on the neckline breakdown and suffer when the wave 5 smashed their stop-loss. They are wondering why double top does not working. Double top with the equal highs has the same possible outcomes. The only one difference that correction called flat instead of irregular. Double top with the second top lower than the first one. Here is the most common variant is the end of the ABC correction. In this case we have the low potential for shorting the market becuase the new impulsive wave to the upside can hit all stop losses. Head & Shoulders This is the easiest pattern for analysis. The right sholder usually is the wave 4, the head, obviously is the wave 5 and the right shoulder is the wave B. On the neckline breakdown we have the shorting potential only in the rest part of the wave C. You could correctly count waves and short that the bearish reversal bar of the wave 5 or, as a last resort, at wave B potential top. Shorting at the neckline has sence only if you are sure that the wave B was the the wave 1 of the impulsive wave to the downside if higher degree and now the market is in wave 3. We have to learn how to count waves in a correct way. I would recommend you to read the Trading Chaos book by Bill Williams because it has the best explanation how do waves work. Triangles and Wedges This part is common for all types of triangles (ascending, descending, symmetrical) and wedges (falling and rising). This patterns have the similar structure. If we faced with one of these patterns we have 4 possible scenarios. Triangle in the downtrend after the wave 3. In this case triangle is the wave 4, which is represented as the triangle correction. This correction type consists of 5 waves A, B, C, D and E. When the wave E is finished market will continue it’s move in the direction of a trend, printing the wave 5. The same, but in the uptrend. When the market showed us the 5 waves cycle to the upside and the correction is in progress. Triangle can appears in the wave B. In this case the price will continue the corrective move in the wave C after it’s finished. The same with the downtrend. Guys, of course there are much more types of chart patterns. For example, tripple tops and bottoms and so on. The purpose of this article is giving you another view of the market structure and to motivate you studying the Elliott waves theory. Believe me, it has much more potential than it seems on the first glimplse. Best regards, Ivan ________________________________________________________________________________________________ If you like my educational ideas, please smash the boost button to stimulate me make more quality articles!
Education
by Skyrexio
USD/CAD corrective mess triangle/complex correctionthe wave count dictates that we are in wave X of a minute degree and yet we haven't show the complete pattern so here is the probabilities: 1) Triangle : it is the highly probable pattern, and since the wave B/X is smaller than A/W and wave C/Y is bigger than wave B/X allows us to assume that a probable triangle would be a barrier triangle, with that being said we should anticipate price being supported at the red line, currently price has made and distinguishable abd correction but even with the NFP report coming out it positive for the Green price couldn't complete wave D this indicates to us that price is preparing a WXY correction inside of wave D but this still remain to the price to make it. 2) WXY : this is probable if price hasn't been supported at the red line we can assume that this corrective pattern is not a triangle which led us to this probability (WXY correction) but we cannot confirm this count until the price break the green line that server us as a support . 3) WXYXZ : as all wave practitioner i do know that this correction is rare but it still possible if price didn't visit the red support and continue it's rising.
Short
by Wyckoff_Monk
APEUSD | Wave Analysis | Bullish Triangle ABCDE ProjectionPrice action and chart pattern trading setup > A possible upcoming bullish triangle ABCDE wave within 1-2 months > B-wave retraced 0.786 of A-wave and recent C-wave retraced exactly 0.786 of B-wave. > Expecting uptrend D-wave at 0.786 of C-wave with an inverted head n shoulders reversal pattern. > Entry: head n shoulders breakout > Target: D-wave position +30%+ > Stoploss: right shoulder -10% > RRR: 3:1 Indicator: > MACD above signal line just below 0. > RSI bullish momentum rebounded from MA line Nothing is 100%, always trade with affordable risk and respect your stoploss
ALong
by dukeposh
DELTA | Wave Analysis | Target Projection - Take Profit ZonePrice action and chart pattern trading setup - take profit position > A descending triangle major wave 2 - ABCDE pattern with 3-3-3-3-3 complex structure > Target: a possible scenario of making D-wave with an upcoming ending diagonal at the upper resistance of the triangle 0.786-1.0 retracement +15-20% upside > Stoploss: at the previous high position a-wave - 8% downside > Risk reward ratio: 2:1 approx. > After completing the D-wave could possibly retrace downward trend 0.382 - 0.786 for the final E-wave which is the most difficult wave to predict. Always trade with affordable risk and respect your stoploss Good luck
SET:DELTALong
by dukeposh
1
Intermediate ABC Extension in Minor 3 Complex Correction in 4Bitcoin has been in a corrective pattern from the low of 17,500 on June 18th and is beginning to exhibit signs that it could either be a reverse expanding triangle or a WXYXZ pattern. Case for the triangle: Each side subdivides into a zig-zag C is 123.6 of A A and C made higher highs while B and soon D will be making higher lows 1H 30mn 15mn Case for WXYXZ: X is between 61.8% and 76.4% of W Y is less than 123.6% of W X is on target to be around 61.8% of W Alternate WXYXZ Finally, as a bullish alternative this could also be a leading diagonal in a wave 1 since the rules for leading diagonals are that each wave 1-5 subdivides as a zig-zag although this feels less likely due to the way the pattern starts contracted and then expands as the correction continues.
COINBASE:BTCUSD
by HelioHelix