Durring the past few weeks I have presented a Diagonal or Triangle. Anyone looking at the patterns would certainly have noticed some kind of a Wedge. I labeled it as a 5,3,5,3,5.
Of all the wedge patterns, either Triangle or Diagonal, the Leading Diagonal is the only pattern with that sequence, and since it quacked like a duck, I called it a Leading Diagonal, but other astute Elliottians let me know that I should rethink that conclusion.
Of all the wedge patterns, either Triangle or Diagonal, the Leading Diagonal is the only pattern with that sequence, and since it quacked like a duck, I called it a Leading Diagonal, but other astute Elliottians let me know that I should rethink that conclusion.
That lead me to studying Diagonals and Triangles. Until now I did not see much difference. To be honest I now feel embarrassed about that, but I believe others may also share that confusion. So here is a very basic list of rules regarding Triangles and Diagonals. Please feel free to comment.
Triangles all have a (3,3,3,3,3) count, and take these four forms:
AT - Ascending Triangles
DT - Descending Triangles
CT - Contracting Triangles
ET - Expanding Triangles
Diagonals take only two forms:
LD - Leading Diagonal - (5,3,5,3,5)
ED - Ending Diagonal - (3,3,3,3,3)
Please notice that all but the Leading Diagonal have a (3,3,3,3,3) count. It is the only wedge that has a (5,3,5,3,5) count.Triangles are labeled A,B,C,D,E They only occur as:
1. Wave B of a Zig Zag,
2. Never as wave 1,2,3 or 5
3. Wave Y, Z, and the final wave X of a Double or Triple Zig Zag
4. Wave E of a Triangle,
5. Any wave 4
Diagonals are labeled 1,2,3,4,5.
Ending Diagonals occur in waves 5 and C, and are always the terminal wave.
(Not internal to a Zig Zag)
Leading Diagonals only occur in waves 1 and A.
So here's the problem with the Leading Diagonal I presented.
Unless this is a wave 1 or wave A it can't be a Leading Diagonal.
But the Wedge clearly appears to begin with a (5,3,5,3,-) count so it can't be an Ending Diagonal either. That would require a (3,3,3,3,3) count. So neither a Diagonal nor a Triangle will work. It's just a coincidence that the trend lines form the appearance of a Wedge.
So the W,X,Y,X,Z scenario appears to be the most likely count I've seen. Below is a wide view of SPY.
So that leaves us in wave of Z which I expect to finish near 1108 on Tuesday.Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.
