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When You See This Elliott Wave Pattern On A Price Chart -- It's Go Time!
The July 9 Elliott Wave Junctures video lesson on contracting triangles reveals how this pattern rewards patience in a big way!
By Nico Isaac
Wed, 11 Jul 2012 15:15:00 ET
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For many traders, lasting sideways movement on a price chart is akin to getting stuck on a one-lane country road behind a 90-year old driver with his/her left-turn signal on.

During these times, patience is tried. The mainstream financial media cloaks would-be curse words in more family-friendly phrases like, "Trapped in a holding pattern," and "Waiting on a fundamental catalyst to provide direction."
 
But for Elliott wave analysts, sideways price moves can often be the ultimate cause for excitement and pro-action. The reason being, they often indicate that an Elliott "triangle" pattern is underway.

"Reviewing Triangles" is the very title of the July 9 Elliott Wave Junctures video lesson. In it, EWI's senior analyst Jeffrey Kennedy records a short,
3:32 minute video tutorial that explains exactly what triangles are -- AND how they reward a trader's patience in a big way.
 
Here are some of the July 9 video's highlights:
 
Immediately after pressing "play," Jeffrey explains: There are 3 types of triangles. The most common one, however, is the "contracting" variety -- seen "80% of the time."
 
  • Jeffrey's definition -- a 5-wave corrective move labeled A through E marked by converging trendlines. Each wave subdivides into 3 smaller waves. (Oh yeah, Jeffrey also shows you that contracting triangles can only occur in one specific point of a 5-wave move, and a 3-wave move.) 
  • And, Jeffrey's idealized diagram:  
 
 
As for the "exciting" part of this pattern: Well, for as long as I can remember, Jeffrey has called the sideways portion of a contracting triangle "market compression." After the pattern is finished compressing, it then expands in a powerful move known as a post-triangle "thrust." That, dear readers, is how a triangle begets a high-confidence trade set-up.
 
And, in the final minutes of the July 9 Elliott Wave Junctures video lesson, Jeffrey shows you exactly how this compression-then-expansion dynamic happens on the real-world price charts of 3 stocks:
 
  1. Cisco Systems Inc (CSCO) -- see below
  2. McDonalds Corp (MCD)
  3. Marvell Technology (MRVL).
 
 
So, what are you waiting for? In 3 minutes, 32 seconds you can be one step closer to identifying high-confidence trade set-ups in any liquid market.
 
Try EWI's brand-new Elliott Wave Junctures service today via a 30-day risk-free trial.
 

Get Real-World Trading Lessons to Help You in Real-Life Trading Scenarios

“The best way to learn how to spot Elliott wave opportunities is to find an experienced mentor to teach you using real-life examples. That’s what Elliott Wave Junctures does, and Jeffrey Kennedy is one of the best teachers I know.” - Robert Prechter

   
Let veteran Elliott wave analyst Jeffrey Kennedy be your trading mentor. 3-5 times per week, Jeffrey walks you through REAL market junctures with one overarching goal: to help you master the critical aspects of spotting and acting on high-probability trading opportunities in the markets you follow.

 
 
 

 

 
 

 

Tags: contracting triangle, Elliott wave, elliott wave junctures, Elliott Wave trading, Jeffrey Kennedy, trading lessons
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