As of 05/30/2023
  Indus: 33,043 -50.56 -0.2%  
  Trans: 13,966 +62.22 +0.4%  
  Utils: 892 -1.41 -0.2%  
  Nasdaq: 13,017 +41.74 +0.3%  
  S&P 500: 4,206 +0.07 +0.0%  
YTD
-0.3%  
 +4.3%  
-7.8%  
 +24.4%  
 +9.5%  
  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 05/30/2023
  Indus: 33,043 -50.56 -0.2%  
  Trans: 13,966 +62.22 +0.4%  
  Utils: 892 -1.41 -0.2%  
  Nasdaq: 13,017 +41.74 +0.3%  
  S&P 500: 4,206 +0.07 +0.0%  
YTD
-0.3%  
 +4.3%  
-7.8%  
 +24.4%  
 +9.5%  
  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 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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