As of 09/29/2023   Indus: 33,508 -158.84 -0.5%     Trans: 14,969 -17.13 -0.1%     Utils: 817 +1.02 +0.1%     Nasdaq: 13,219 +18.04 +0.1%     S&P 500: 4,288 -11.65 -0.3%	YTD  +1.1%    +11.8%   -15.6%    +26.3%    +11.7%	Targets    Overview: 09/15/2023     34,500 or 33,150 by 10/15/2023   15,500 or 14,200 by 10/15/2023   880 or 800 by 10/15/2023   13,750 or 12,700 by 10/15/2023   4,425 or 4,175 by 10/15/2023
Chart Pattern Indicator: on 9/29/23

As of 09/29/2023   Indus: 33,508 -158.84 -0.5%     Trans: 14,969 -17.13 -0.1%     Utils: 817 +1.02 +0.1%     Nasdaq: 13,219 +18.04 +0.1%     S&P 500: 4,288 -11.65 -0.3%	YTD  +1.1%    +11.8%   -15.6%    +26.3%    +11.7%
Targets    Overview: 09/15/2023     34,500 or 33,150 by 10/15/2023   15,500 or 14,200 by 10/15/2023   880 or 800 by 10/15/2023   13,750 or 12,700 by 10/15/2023   4,425 or 4,175 by 10/15/2023
Chart Pattern Indicator: on 9/29/23

Bulkowski on the Symmetrical Triangle Elliott Wave Pattern

This page describes the 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 running triangle is very close to the symmetrical triangle. Click the link for more information.

The figure to the right shows what a symmetrical triangle looks like in a bull market. The 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 A 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 symmetrical triangle, the shape of the pattern follows two converging trendlines, shown here as red lines.

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

On rare occasions, a symmetrical triangle can nest inside a symmetrical 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.

Symmetrical Triangle Rules

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

• The waves bottom and top out following two converging trendlines.
• Five waves compose the symmetrical triangle (A-B-C-D-E), unless extended.
• Each of the A-B-C-D-E waves are composed of three subwaves, so it has a 3-3-3-3-3 configuration.
• Volume and volatility tend to recede over the life of the pattern, but this is not a requirement.

-- Thomas Bulkowski

See Also

• This article on symmetrical triangles gives performance statistics.
• Busted symmetrical triangles
• 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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