CHAPTER 4

Diagonal Triangles (Wedges)

Termination and Leading Patterns

Now that you have the start of a working vocabulary regarding corrective patterns, it will be easier to examine these wedge-shaped patterns in a more meaningful way. Then, when we have finished this discussion, you will be ready for your first exam to really anchor these concepts and to uncover any weaknesses you may have. In Chapter 5 is a practice exam to build your confidence. Then (also in Chapter 5) the final exam will follow to ensure you are starting to see the basic patterns. The second book, Advanced Elliott Wave Analysis: Complex Patterns, Intermarket Relationships, and Global Cash Flow Analysis, will begin at the intermediate level. Do not move on to the Intermediate material until you are comfortable and know you are ready.

Looking at the basic corrective patterns first was important because the internals of the most common diagonal triangle pattern uses these same corrective patterns to develop the larger wedge formation. There are two types of Diagonal Triangles and they carry very different messages.