What factors determine the classification of various Triangles?
Triangles are probably the most misunderstood and misidentified wave formations. There are three categories of Triangles under NEoWave theory - Contracting, Expanding and Neutral (the Neutral category does not exist under orthodox Elliott Wave). Each category has very specific requirements for its construction; if those requirements are not met, some other pattern is forming.
In a Contracting Triangle, wave-A is always the longest and most violent, followed by wave-C (which is almost always 61.8% of wave-A) and wave-E which must be at least 38.2% of wave-C but no more than 99% of wave-C.
In a NEoWave Neutral Triangle, wave-C is the longest wave with waves-A & E tending toward equality (the same that occurs in a 3rd wave extension between waves-1 & 5). Waves-A and E in this pattern should be at least 38.2% of wave-C, but will usually be between 61.8% to 72% of wave-C).
In an Expanding Triangle, wave-A is the shortest wave, wave-C is between 101% and 161.8% of wave-A and wave-E is usually from 101% to 161.8% of wave-C. In rare cases, where the Expansion is concluding a major market advance or decline, wave-E can get "out of control," producing a "blow-off" or "meltdown" which could make wave-E as much as 261.8% of wave-A or wave-C.
Notice in none of the above Triangle definitions do I mention the behavior of waves-B & D. That is because the behavior of waves-B & D never determines the type of Triangle forming. As long as waves-B & D conform to NEoWave rules of price, time and complexity similarity, virtually anything is allowed. If waves-B & D produce standard alternation, the channeling of each Triangle will be as you would expect (converging for a Contraction, expanding for an Expanding Triangle and parallel for a Neutral Triangle). If waves-B & D exhibit NEoWave reverse alternation, the channeling for Contracting and Expanding Triangles will generally be parallel and for Neutral Triangles will be either converging or expanding, but not parallel.
At specific times each week, Glenn Neely is available to answer questions, provide guidance, and offer individualized advice. This is an opportunity to speak directly with Mr. Neely to address your unique situation, advance your understanding of markets, and hone your trading and forecasting skills.
Cost is $20/minute, with a 10-minute minimum ($200 minimum charge). Your credit card will be charged after the call.
To schedule a consultation, please click on the "Request a Consultation" button below and fill out the Contact form. Our Sales Manager, Magelan Ferreira, will respond to your request to arrange a consult with Mr. Neely.