As of 06/02/2023
  Indus: 33,763 +701.19 +2.1%  
  Trans: 14,150 +270.31 +1.9%  
  Utils: 900 +9.20 +1.0%  
  Nasdaq: 13,241 +139.79 +1.1%  
  S&P 500: 4,282 +61.35 +1.5%  
YTD
 +1.9%  
 +5.7%  
-7.0%  
 +26.5%  
 +11.5%  
  Targets    Overview: 05/30/2023  
  Up arrow33,950 or 32,000 by 06/15/2023
  Up arrow14,600 or 13,350 by 06/15/2023
  Up arrow935 or 880 by 06/15/2023
  Up arrow13,600 or 12,200 by 06/15/2023
  Up arrow4,350 or 4,000 by 06/15/2023
As of 06/02/2023
  Indus: 33,763 +701.19 +2.1%  
  Trans: 14,150 +270.31 +1.9%  
  Utils: 900 +9.20 +1.0%  
  Nasdaq: 13,241 +139.79 +1.1%  
  S&P 500: 4,282 +61.35 +1.5%  
YTD
 +1.9%  
 +5.7%  
-7.0%  
 +26.5%  
 +11.5%  
  Targets    Overview: 05/30/2023  
  Up arrow33,950 or 32,000 by 06/15/2023
  Up arrow14,600 or 13,350 by 06/15/2023
  Up arrow935 or 880 by 06/15/2023
  Up arrow13,600 or 12,200 by 06/15/2023
  Up arrow4,350 or 4,000 by 06/15/2023

Bulkowski on the Descending Triangle Elliott Wave Pattern

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

 

The descending triangle in a bull market. The figure to the right shows what a descending triangle looks like in a bull market. The descending 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. Expect volume and volatility to recede as the pattern moves toward the breakout, but this is not a requirement.

In a descending triangle, the bottom of the triangle finds support at a horizontal trendline (the horizontal red line), and the top of the triangle slopes downward following another red trendline.

 

The descending triangle in a bear market. A descending triangle in a bear market is not an inverted picture of a bull market triangle. Rather, the chart to the right shows a descending triangle with the waves inverted while still obeying the flat bottom and down sloping top trendlines. The A-B-C-D-E waves subdivide into threes, forming a 3-3-3-3-3 configuration.

On rare occasions, a descending triangle can nest inside a descending triangle. You see this when the wave count exceeds the A-B-C-D-E format, forming a nine wave pattern. Also, Frost and Prechter say that when price reaches the apex of the triangle, expect the market to turn.

 

Descending Triangle Rules

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

-- Thomas Bulkowski

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See Also

 

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