As of 11/01/2024
  Indus: 42,052 +288.73 +0.7%  
  Trans: 16,351 +99.18 +0.6%  
  Utils: 1,019 -17.89 -1.7%  
  Nasdaq: 18,240 +144.77 +0.8%  
  S&P 500: 5,729 +23.35 +0.4%  
YTD
 +11.6%  
 +2.8%  
 +15.6%  
 +21.5%  
 +20.1%  
  Targets    Overview: 10/31/2024  
  Up arrow43,100 or 41,250 by 11/15/2024
  Up arrow16,800 or 15,700 by 11/15/2024
  Up arrow1,075 or 1,000 by 11/15/2024
  Up arrow19,000 or 17,600 by 11/15/2024
  Up arrow5,900 or 5,600 by 11/15/2024
As of 11/01/2024
  Indus: 42,052 +288.73 +0.7%  
  Trans: 16,351 +99.18 +0.6%  
  Utils: 1,019 -17.89 -1.7%  
  Nasdaq: 18,240 +144.77 +0.8%  
  S&P 500: 5,729 +23.35 +0.4%  
YTD
 +11.6%  
 +2.8%  
 +15.6%  
 +21.5%  
 +20.1%  
  Targets    Overview: 10/31/2024  
  Up arrow43,100 or 41,250 by 11/15/2024
  Up arrow16,800 or 15,700 by 11/15/2024
  Up arrow1,075 or 1,000 by 11/15/2024
  Up arrow19,000 or 17,600 by 11/15/2024
  Up arrow5,900 or 5,600 by 11/15/2024

Bulkowski on the Truncation Elliott Wave Pattern

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

The truncation wave in a bull market. The figure to the right shows what a truncation wave looks like in a bull market. Truncation occurs when wave five fails to move beyond the end of wave three. For this reason, truncation is sometimes called a truncated fifth (or even a 2B). The red line illustrates how wave five fails to meet or exceed the end of wave three.

The subwave configuration for a truncation. The figure to the right show the subwave configuration of an ideal truncation in a bull market. Waves one, three, and five, are composed of five sub waves. Waves two and four have three subwaves each. Thus the configuration of the subwaves is 5-3-5-3-5.

The truncation in a bear market. This chart is the same as the first one but the wave occurs in a bear market. Wave five fails to reach the end of wave three as the red line shows.

According to Frost and Prechter, you will see a truncated fifth often after an unusually strong wave 3 thrust.

Truncation Wave Rules

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

-- Thomas Bulkowski

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See Also

 

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