Elliott Wave triangle patterns are powerful consolidation structures that appear during trending markets, signalling a temporary pause before price resumes in the original direction. These patterns are a key part of Elliott Wave Theory and, when identified correctly, provide traders with a high-probability roadmap for future market movement. In this article, we explore the types, structure, and strategy behind Elliott Wave triangle patterns.

What Are Elliott Wave Triangle Patterns?

Elliott Wave triangle patterns are corrective wave formations that consist of five sub-waves labelled A-B-C-D-E. These waves move in a converging or diverging fashion and unfold sideways rather than vertically. Triangles typically appear in Wave 4 of an impulse or Wave B of a corrective pattern.

The key feature of these patterns is that they represent a pause, not a reversal, in the existing trend. Once the E wave completes, a sharp breakout usually follows in the direction of the prior trend.

Types of Elliott Wave Triangles

There are five main types of Elliott Wave triangle patterns:

• Ascending Triangle: Flat top with higher lows — bullish bias.
• Descending Triangle: Flat bottom with lower highs — bearish bias.
• Symmetrical Triangle: Lower highs and higher lows — neutral until breakout.
• Expanding Triangle: Diverging trendlines — rare and highly volatile.
• Running Triangle: Slightly sloped in the direction of the trend — very powerful.

All triangle types contain five legs (A, B, C, D, E), and each leg is typically composed of a zigzag or a double zigzag.

Structure of Elliott Wave Triangle Patterns

A standard Elliott Wave triangle follows this structure:

• Wave A: The first move in the correction.
• Wave B: Reverses wave A partially.
• Wave C: Continues sideways or slightly beyond A.
• Wave D: Turns from C, often mimicking wave B.
• Wave E: Final wave, usually weakest and contracts into the apex.

Each leg should remain within the boundaries of two converging (or diverging) trendlines. The triangle is confirmed once wave E completes and price breaks out.

How to Trade Elliott Wave Triangles

Step 1: Identify the Context
Triangles typically appear in Wave 4 or Wave B. Understanding where you are in the broader Elliott Wave cycle is essential.

Step 2: Draw the Trendlines
Once waves A through C are clear, draw two trendlines — one connecting A and C, and the other B and D. This forms the triangle’s boundary.

Step 3: Wait for Completion of Wave E
Do not trade until wave E completes. This is the last sub-wave and often exhibits false breakouts or choppy behaviour.

Step 4: Enter on the Breakout

• Entry: Place a buy or sell order after a confirmed breakout from the triangle.
• Stop-Loss: Set just beyond the opposite side of the triangle.
• Target: Measure the height of the widest part of the triangle and project it from the breakout point.

Why Elliott Wave Triangle Patterns Work

Elliott Wave triangle patterns work because they capture market indecision and provide structure to otherwise chaotic consolidation phases. By labelling waves A-E, traders can time entries with greater confidence and avoid premature breakouts.

Triangles also allow for low-risk entries with well-defined stops and targets, making them ideal for strategic swing trading.

Common Mistakes to Avoid

• Miscounting Waves: Labeling impulsive waves as corrective can lead to faulty analysis.
• Entering Before Wave E Completes: Wave E often causes false breakouts or whipsaws.
• Ignoring Market Context: Knowing whether you’re in Wave 4 or B helps validate the triangle’s presence.

Elliott Triangle vs Flag and Wedge Patterns

Feature	Elliott Triangle	Flag Pattern	Wedge Pattern
Number of Legs	5 (A-E)	2 or 3	3+
Market Context	Wave 4 or B	Continuation	Reversal or Cont.
Confirmation Method	Wave Structure	Trendline Break	Trendline Slope
Entry Timing	After Wave E	On Breakout	On Breakout

Elliott Wave triangle patterns are more structured and rely on wave counts, unlike simpler chart patterns such as flags or wedges.

Conclusion

Elliott Wave triangle patterns are essential tools for any trader aiming to master market cycles. These five-leg corrective structures signal a pause before a sharp continuation, allowing traders to prepare for breakout entries with tight risk control. When applied within the broader Elliott Wave framework, triangles offer an edge in timing and precision.

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