Triangle is found in the position of wave 4, wave B of A-B-C correction, or in wave X in double zig-zags (W-X-Y) or triple zig-zags (W-X-Y-X-Z). Triangles usually tell that the price will move in the dominant trend once more.
We have four types of triangles:
1. Barrier Triangle: Wave D ends at the same endpoint as wave B.
2. Contracting Triangle: Trendlines prices usually converge.
3. Expanding Triangle: Trendlines prices usually diverge.
4. Running Triangle: Wave B moves above the start of wave A.
Running & Contracting triangles are common.
Barrier& Expanding triangles are less common.
Triangles take time and move price sideways. It is very easy for a trader to label a triangle ABCDE. If a triangle is seen then expect the price to exit the triangle in the same direction it entered, and that the movement out of the triangle to be the last movement in that direction.
We have four types of triangles:
1. Barrier Triangle: Wave D ends at the same endpoint as wave B.
2. Contracting Triangle: Trendlines prices usually converge.
3. Expanding Triangle: Trendlines prices usually diverge.
4. Running Triangle: Wave B moves above the start of wave A.
Running & Contracting triangles are common.
Barrier& Expanding triangles are less common.
Triangles take time and move price sideways. It is very easy for a trader to label a triangle ABCDE. If a triangle is seen then expect the price to exit the triangle in the same direction it entered, and that the movement out of the triangle to be the last movement in that direction.