Impulse Diagonal Zigzag Flat Triangle Combination
Rules
- A diagonal triangle always subdivides into five waves.
- An ending diagonal always appears as wave 5 of an impulse or wave C of a zigzag or flat.
- A leading diagonal always appears as wave 1 of an impulse or wave A of a zigzag.
- Waves 1, 2, 3, 4 and 5 of an ending diagonal, and waves 2 and 4 of a leading diagonal, always subdivide into zigzags.
- Wave 2 never goes beyond the start of wave 1.
- Wave 3 always goes beyond the end of wave 1.
- Wave 4 never moves beyond the start of wave 3.
- Wave 4 always ends within the price territory of wave 1.
- Going forward in time, a line connecting the ends of waves 2 and 4 converges towards (in the contracting variety) or diverges from (in the expanding variety) a line connecting the ends of waves 1 and 3.
- In a leading diagonal, wave 5 always ends beyond the end of wave 3.
- In the contracting variety, wave 3 is always shorter than wave 1, wave 4 is always shorter than wave 2, and wave 5 is always shorter than wave 3.
- In the expanding variety, wave 3 is always longer than wave 1, wave 4 is always longer than wave 2, and wave 5 is always longer than wave 3.
- In the expanding variety, wave 5 always ends beyond the end of wave 3.
Guidelines
- Waves 2 and 4 each usually retrace .66 to .81 of the preceding wave.
- Waves 1, 3 and 5 of a leading diagonal usually subdivide into zigzags but sometimes appear to be impulses.
- Within an impulse, if wave 1 is a diagonal triangle, wave 3 is likely to be extended.
- Within an impulse, wave 5 is unlikely to be a diagonal triangle if wave 3 is not extended.
- In the contracting variety, wave 5 usually ends beyond the end of wave 3. (Failure to do so is called a truncation.)
- In the contracting variety, wave 5 usually ends at or slightly beyond a line that connects the ends of waves 1 and 3. (Ending beyond that line is called a throw-over.)
- In the expanding variety, wave 5 usually ends slightly before reaching a line that connects the ends of waves 1 and 3.
* Note: We have found one diagonal triangle in the Dow in which wave four did not reach the price territory of wave one. See Figure 1-18 in Elliott Wave Principle.
