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There are several real life examples of
triangles in the charts in this course. As you will notice, most of
the subwaves in a triangle are zigzags, but sometimes one of the
subwaves (usually wave c) is more complex than the others and can take
the shape of a regular or expanded flat or multiple zigzag. In rare
cases, one of the sub-waves (usually wave e) is itself a triangle, so
that the entire pattern protracts into nine waves. Thus, triangles,
like zigzags, occasionally display a development that is analogous to
an extension. One example occurred in silver from 1973 through 1977
(see Figure 1-44).
Figure 1-44
Although upon extremely rare occasions
a second wave in an impulse appears to take the form of a triangle,
triangles nearly always occur in positions prior to the final
actionary wave in the pattern of one larger degree, i.e., as wave four
in an impulse, wave B in an A-B-C, or the final wave X in a double or
triple zig-zag or combination (to be shown in Lesson 9). A triangle
may also occur as the final actionary pattern in a corrective
combination, as discussed in Lesson 9, although even then it always
precedes the final actionary wave in the pattern of one larger degree
than the corrective combination.
In the stock market, when a triangle
occurs in the fourth wave position, wave five is sometimes swift and
travels approximately the distance of the widest part of the triangle.
Elliott used the word "thrust" in referring to this swift,
short motive wave following a triangle. The thrust is usually an
impulse but can be an ending diagonal. In powerful markets, there is
no thrust, but instead a prolonged fifth wave. So if a fifth wave
following a triangle pushes past a normal thrust measurement, it is
signaling a likely protracted wave. Post-triangle advancing impulses
in commodities at degrees above Intermediate are usually the longest
wave in the sequence, as explained in Lesson 29.
On the basis of our experience with
triangles, as the example in Figure 3-15 illustrates, we propose that
often the time at which the boundary lines of a contracting triangle
reach an apex coincides exactly with a turning point in the market.
Perhaps the frequency of this occurrence would justify its inclusion
among the guidelines associated with the Wave Principle.
The term "horizontal" as
applied to triangles refers to these corrective triangles in general,
as opposed to the term "diagonal," which refers to those
motive triangular formations discussed in Lesson 5. Thus, the terms
"horizontal triangle" and "diagonal triangle"
denote these specific forms under the Wave Principle. The simpler
terms "triangle" and "wedge" may be substituted,
but keep in mind that technical chart readers have long used these
terms to communicate less specifically subdivided forms defined only
by overall shape. Having separate terms can be useful.
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