Visual Guide to Elliott Wave Trading, Enhanced Edition by Wayne Gorman

Author:Wayne Gorman [Gorman, Wayne]
Language: eng
Format: epub
ISBN: 978-1-118-47954-4
Publisher: Wiley
Published: 2013-03-22T16:00:00+00:00

One key characteristic of ending diagonals is that all the initial subwaves form either single or multiple zigzag patterns. Here is a close-up view of this diagonal on an hourly bar chart (see Figure 5.22) in order to reveal these zigzag patterns.

Waves [1], [2], and [4] appear to be single zigzags, while waves [3] and [5] appear to be double zigzags. Wave [5] makes a throw-over, because it travels slightly beyond the 1-3 trendline. A throw-over often indicates that the diagonal has finished. Once prices move below the 2-4 trendline, we would have strong evidence that the diagonal had terminated at 1.5985. The next event should be a swift move to at least 1.5273 and probably beyond.

Figure 5.23

Chart reprinted with permission from Bloomberg. Copyright 2013 Bloomberg L.P. All rights reserved.

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