Corrective
Contracting Triangle
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.
EXAMPLE
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.