As of 07/22/2024
  Indus: 40,415 +127.91 +0.3%  
  Trans: 15,900 +116.79 +0.7%  
  Utils: 957 +6.49 +0.7%  
  Nasdaq: 18,008 +280.63 +1.6%  
  S&P 500: 5,564 +59.41 +1.1%  
YTD
 +7.2%  
 +0.0%  
 +8.6%  
 +20.0%  
 +16.7%  
  Targets    Overview: 07/12/2024  
  Up arrow41,500 or 40,000 by 08/01/2024
  Up arrow16,500 or 15,600 by 08/01/2024
  Up arrow1,000 or 910 by 08/01/2024
  Up arrow19,200 or 17,800 by 08/01/2024
  Up arrow5,750 or 5,500 by 08/01/2024
As of 07/22/2024
  Indus: 40,415 +127.91 +0.3%  
  Trans: 15,900 +116.79 +0.7%  
  Utils: 957 +6.49 +0.7%  
  Nasdaq: 18,008 +280.63 +1.6%  
  S&P 500: 5,564 +59.41 +1.1%  
YTD
 +7.2%  
 +0.0%  
 +8.6%  
 +20.0%  
 +16.7%  
  Targets    Overview: 07/12/2024  
  Up arrow41,500 or 40,000 by 08/01/2024
  Up arrow16,500 or 15,600 by 08/01/2024
  Up arrow1,000 or 910 by 08/01/2024
  Up arrow19,200 or 17,800 by 08/01/2024
  Up arrow5,750 or 5,500 by 08/01/2024

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

Top of page

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My Stock Market Books
My Novels

Copyright © 2005-2024 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Privacy/Disclaimer

Bumper sticker: Watch out for the idiot behind me.Smiley