medium · Elliott Wave Theory
How can an analyst distinguish between an ending diagonal and a contracting triangle during a terminal price move?
- Diagonals have horizontal boundary lines, whereas triangles must have converging slanted lines.
- Triangles only appear on daily charts, while diagonals appear only on weekly charts.
- Triangles always lead to a trend reversal, while diagonals lead to a trend continuation.
- Diagonals are numbered 1-2-3-4-5 and move in the trend direction; triangles are lettered A-B-C-D-E and move sideways.
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