As of 05/13/2022
  Indus: 32,197 +466.36 +1.5%  
  Trans: 14,456 +136.14 +1.0%  
  Utils: 993 +9.90 +1.0%  
  Nasdaq: 11,805 +434.04 +3.8%  
  S&P 500: 4,024 +93.81 +2.4%  
YTD
-11.4%  
-12.3%  
 +1.2%  
-24.5%  
-15.6%  
  Targets    Overview: 04/26/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow16,300 or 13,900 by 05/15/2022
  Down arrow950 or 1,100 by 05/15/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22
As of 05/13/2022
  Indus: 32,197 +466.36 +1.5%  
  Trans: 14,456 +136.14 +1.0%  
  Utils: 993 +9.90 +1.0%  
  Nasdaq: 11,805 +434.04 +3.8%  
  S&P 500: 4,024 +93.81 +2.4%  
YTD
-11.4%  
-12.3%  
 +1.2%  
-24.5%  
-15.6%  
  Targets    Overview: 04/26/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow16,300 or 13,900 by 05/15/2022
  Down arrow950 or 1,100 by 05/15/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22

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 prior 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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