Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises

Leading Diagonal Triangle Pattern—Type 2

The Diagonal Triangle patterns that have corrective internals and occur at the exhausted conclusion of a larger trend are, without question, the type of wedge pattern you will encounter most often. But Robert Prechter Jr., in his book Elliott Wave Principle, describes a pattern R. N. Elliott mentions as Diagonal Triangle Type 2. There is not much on this pattern in most books, as it is not often encountered. But in hindsight, there will be times when the only way to describe a market move is to call upon the Type 2 Leading Diagonal Triangle pattern.

These are sneaky so-and-sos that destroy the unaware. The market you will find them hiding in most often will be in Treasury Bond and all global fixed income ...