Contracting Triangle
Elliott Wave Theory glossary · Corrective Structures & Sub Wave Math
Definition
A ve-wave corrective pattern (A-B-C-D-E) in which boundary lines converge and each successive wave is shorter than its predecessor.
Contracting Triangle in plain English
A triangle here is a sideways 'catching its breath' pattern made of five smaller swings labeled A, B, C, D, E, and in a contracting triangle each swing is a little shorter than the one before. If you draw a line across the tops and another across the bottoms, the two lines squeeze toward each other like the closing jaws of a pair of scissors. It signals that buyers and sellers are running out of energy and coiling up before the market breaks out and continues its bigger trend.
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