Subscribe to RSS feeds Bulkowski Blog via RSS

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral. My books...

Encyclopedia of Chart Patterns 2nd Edition book.
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Picture of Bumper.
Kindle
Picture of the head's law.
Kindle

Bulkowski's Reverse Symmetrical Triangle

Class Elliott Wave Fundamentals Psychology Quiz Studies Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019
As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

This page describes the reverse symmetrical triangle pattern of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

 

The reverse symmetrical triangle in a bull market. The figure to the right shows what a reverse symmetrical triangle looks like in a bull market. The reverse symmetrical triangle is a region of horizontal price movement, a consolidation of a prior move, and it is composed of "threes." That means each of the A-B-C-D-E waves have three subwaves. I labeled the B subwaves with red numbers, 1, 2, and 3, as an example.

In a reverse symmetrical triangle, the shape of the pattern follows two diverging trendlines, shown here as red lines. A reverse symmetrical triangle is more commonly known as a broadening top or broadening bottom. According to Frost and Prechter, "There are no variations on the rarer expanding triangle," which is another name for the reverse symmetrical triangle. I have not looked for the 3-3-3-3-3 combination, but I do know that other broadening patterns exist. Check out: right-angled broadening top, ascending, right-angled broadening top, descending, broadening wedge, ascending, and broadening wedge, descending.

 

Top

 

The reverse symmetrical triangle in a bear market. A reverse symmetrical triangle in a bear market is an inverted picture of a bull market triangle. The price action swings from trendline to trendline, and diverges. The A-B-C-D-E waves subdivide into threes, forming a 3-3-3-3-3 configuration.

Reverse Symmetrical Triangle Rules

The reverse symmetrical triangle has rules that govern its shape. They are listed here.

  • The waves bottom and top out following two diverging trendlines.
  • Five waves compose the reverse symmetrical triangle (A-B-C-D-E).
  • Each of the A-B-C-D-E waves are composed of three subwaves, so it has a 3-3-3-3-3 configuration.

-- Thomas Bulkowski

Top 

See Also

Written by and copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. Sure you can trust the government. Just ask a native American!