As of 04/19/2024   Indus: 37,986 +211.02 +0.6%     Trans: 15,084 +136.79 +0.9%     Utils: 876 +15.31 +1.8%     Nasdaq: 15,282 -319.49 -2.0%     S&P 500: 4,967 -43.89 -0.9%	YTD  +0.8%   -5.1%   -0.7%    +1.8%    +4.1%	Targets    Overview: 04/12/2024     39,800 or 37,150 by 05/01/2024   16,200 or 15,000 by 05/01/2024   885 or 850 by 05/01/2024   16,700 or 15,800 by 05/01/2024   5,250 or 5,025 by 05/01/2024
Chart Pattern Indicator: on 4/1/24

As of 04/19/2024   Indus: 37,986 +211.02 +0.6%     Trans: 15,084 +136.79 +0.9%     Utils: 876 +15.31 +1.8%     Nasdaq: 15,282 -319.49 -2.0%     S&P 500: 4,967 -43.89 -0.9%	YTD  +0.8%   -5.1%   -0.7%    +1.8%    +4.1%
Targets    Overview: 04/12/2024     39,800 or 37,150 by 05/01/2024   16,200 or 15,000 by 05/01/2024   885 or 850 by 05/01/2024   16,700 or 15,800 by 05/01/2024   5,250 or 5,025 by 05/01/2024
Chart Pattern Indicator: on 4/1/24

Bulkowski on the Reverse Symmetrical Triangle Elliott Wave Pattern

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 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.

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

See Also

• A broadening top has price entering the pattern from the bottom.
• A broadening bottom is a reverse symmetrical triangle.
• Here is the main resource for Elliott wave information.
• Support and resistance. Learn the various types.
• Market direction. 7 tips to determining.
• Trading cycles help time your entries and exits.
• Trend change detection using a triangle apex.

 

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