Contracting Triangle
Contracting Triangle in Elliott Wave Theory: A five-wave sideways pattern (A-B-C-D-E) where each successive wave is shorter than the previous one, forming converging trendlines. It typically appears in Wave 4 or Wave B position.
What Contracting Triangle Means
A five-wave sideways pattern (A-B-C-D-E) where each successive wave is shorter than the previous one, forming converging trendlines. It typically appears in Wave 4 or Wave B position.
A stock forms a triangle in Wave 4 where Wave A is $8, Wave B is $6.50, Wave C is $5, Wave D is $3.50, and Wave E is $2.50.
Where You'll See It
Contracting Triangle appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the corrective family of Elliott Wave concepts and shows up most often when analysts are decoding a 3-wave correction inside a larger impulse — A-B-C, zigzag, flat, or triangle.
- → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
- → Elliott Wave Cheat Sheet — the 3 absolute rules and 6 Fibonacci relationships
- → Our Methodology — how Artavest analysts count waves on 108 US instruments