“One of my favorite Elliott wave patterns”
by Editorial Staff
Updated: June 09, 2023
Good day! Bonjour! Ni Hao! It's Murray Gunn from Elliott Wave International here. I'd like to take a minute of your time to show you one of my favorite Elliott wave patterns and what it might mean now.
Frost and Prechter's classic 1978 Elliott Wave Principle: Key to Market Behavior listed all the price patterns that R.N. Elliott had discovered back in the 1930s.
Triangles come in various forms, and they always occur in a position prior to the final actionary wave in the pattern of one larger degree. In this regard, triangles are useful patterns to recognize because the subsequent movement will always be in the direction of the previous trend.
This chart shows the amount of Swedish krona required to buy one European Union euro. A rising price indicates a depreciating value of the Swedish krona. We showed the chart in September last year when we identified a triangle pattern, which we labeled as wave (X), after an advance in wave (W) from November 2021.
Because the triangle pattern allowed us to anticipate the next movement, this enabled us to make a forecast. We stated at the time:
"It looks like the krona could have much further to depreciate versus the European Union euro..."
The krona has subsequently devalued by over 10% versus the euro, and with what looks like another triangle pattern just completed, that trend might still have further to go. In Elliott wave, identifying triangle patterns can be extremely helpful.
For more cool chats like this, stay tuned to Elliottwave.com. Until the next time, ciao!
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