If a move up from one boundary to the next doesn’t breakdown into at least a simple a-b-c zigzag move, then it probably isn’t complete. Conversely, many of the triangles I see labeled with more than 5 waves include a complex a-b-c wave that's being double counted.

Even before this requirement is met, it's all about context. An Elliott rule is that “a triangle always occurs in a position prior to the final wave in the pattern of one larger degree.” This statement simply means that there are only 3 possible Elliott wave-pattern locations where a triangle can occur; location, location, location. Knowing if current price action is even ripe for a triangle can eliminate 90% of false triangles.

The most common location is the fourth wave of a 5-wave motive/impulse wave; next is the B wave of an A-B-C pattern; and third is the less common location of a final X wave complex double or triple-combination corrective pattern

I'll start with the most abstract placement of a triangle, which is the X wave in a complex combination corrective pattern. In this chart, I show an A-B-C zigzag followed by a triangle (with 5 boundary touches), then another A-B-C zigzag. The triangle is the connecting X wave.


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Looking at the same chart, if the price pattern started at the lower left B and completed 5 waves going into the triangle, then 5 more waves of equal proportion upon exiting the triangle, the triangle would be a B wave of an A-B-C pattern. In classic technical analysis, this type of pattern would also be called a pennant (a pennant flies at half-mast). An Elliott A-B-C pattern with a triangle as the B wave is an example of what I call the truth (Elliott interpretation) and the periphery (classic interpretation).

Finally, if price is in a trending market and has completed a 3-wave pattern where the third wave is a 1.618 or 2.618 Fibonacci extension of the first wave, and price then enters into sideways zigzagging pattern, there's a high probability that price is in a fourth-wave triangle pattern.


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If you track an Elliott triangle through completion of an E wave, there's a high probability that the next wave is the breakout wave. This knowledge provides a superior entry point compared to attempting to trade a triangle breakout. Elliott triangles, like all chart patterns, appear in every time frame but appear less often than the classic triangle interpretation. It's a case of quality, not quantity.