# Triangle corrective wave pattern of Elliott

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After 2 articles on Zigzag and Flat, today we will learn the final form, the Triangle wave pattern. These are the 3 most popular corrective patterns in Elliott wave theory. If you know them well, you will know the best entry point when the market starts a correction cycle when forming bearish waves after a strong rally.

## Triangle corrective wave pattern

Triangle wave is a corrective pattern. There are two common types of Triangle patterns, Contracting Triangle (CT) and Expanding Triangle (ET).

These corrections have a 5-wave structure, marked A-B-C-D-E, respectively 3-3-3-3-3 structure, moving within the 2 converging or expanding price channels drawn from A to C and from B to D.

The Triangle wave pattern appears in waves 4, B, and X. It never occurs in waves 2 or A.

Triangle waves usually appear before the last major trend of the next larger wave level. After the last wave of movement is usually a quick and strong price reversal

## Contracting Triangle corrective wave pattern

The Contracting Triangle pattern is quite popular. In this one, the price channel lines AC and BD gradually converge.

Rules of the CT wave pattern:

• Wave A can only be a Zigzag (ZZ), Double Zigzag (DZ) or Triple Zigzag (TZ), or Flat (FL).
• Wave B can only be a ZZ, DZ, or TZ.
• Waves C and D can follow any corrective pattern except CT or ET patterns.
• Waves A, B, C, and D must move in or near the AC and BD price channel lines. The price channel crossover must occur after the end of the E wave. The price channel lines must converge, they cannot be parallel.
• One of the price channel lines can be horizontal (so the CT pattern can be a Symmetrical Triangle, Ascending Triangle or Descending Triangle).
• Wave E can be a ZZ, DZ or TZ, or Contracting Triangle.
• Wave E must be shorter than wave D in price and wave E must be 20% longer than wave D in price (0.2D < E < D).
• Either wave A or wave B should be the longest wave in price. Wave E must end in the price zone of wave A. Wave E must move in or close to the BD channel line.

## Variations of the Contracting Triangle

When the AC and BD channel lines converge symmetrically, it has the form of Contracting Triangle Symmetrical.

When two channel lines AC and BD converge in which AC is horizontal and BD is descending, we get the Contracting Triangle Descending.

When 2 channel lines AC and BD converge in which BD is horizontal and AC is ascending, we get the Contracting Triangle Ascending.

When the AC and BD channel lines converge and run in an upward or downward direction, we have the Contracting Triangle Running.

## Expanding Triangle pattern

The ET pattern is very uncommon among the Elliott wave patterns. In this one, the 2 channel lines AC and BD gradually expand to the right.

Rules of the Expanding Triangle (ET) wave pattern:

• All 5 waves A, B, C, D, and E must follow the Zigzag, Double Zigzag, or Triple Zigzag patterns.
• Wave B must be shorter than wave C in price but 40% longer than wave C in price (0.4C < B < C). Waves A, B, C, and D must move in or near the AC and BD price channel lines. Wave C must be shorter than wave D in price but 40% longer than wave D in price (0.4D < C < D).
• Wave A must move in or near the AC channel line. Channel line crossovers must occur before the start of wave A. Channel lines must diverge, they cannot be parallel. No price channel line is horizontal.
• Wave E must be longer than wave D and wave D must be 40% larger than wave E in price (0.4E < D < E). Either wave A or wave B is the shortest wave in price. Wave E must move in or near the BD channel line.

Note: Expanding Triangle pattern has no variation