ENDING DIAGONAL TERMINATION WAVES EVERYWHERE!
Elliott Wave's "Ending Diagonals"
The ending diagonal is a special type of wave that occurs in Wave 5 of an impulse, or the last wave of a correction pattern - Wave C of an A, B, C correction. This wave often occurs when the preceding move of the trend has gone too far, too fast and has run out of steam. In all cases, they are found at the end of the higher degree motive or corrective wave. This wave pattern indicates the termination of the previous trend of one higher degree.
The wave-structure of an ending diagonal is different from the impulse wave. Where the impulse wave had a general structure count of 5-3-5-3-5, the ending diagonal has a structure count of 3-3-3-3-3. All five of the waves of an ending diagonal break down to only three waves each, indicating exhaustion of the larger degree trend. Also, Wave 2 and Wave 4 may overlap each other.
Most ending diagonals have a wedge shape to them where they fit within two converging lines. However, there are cases where the wedge is expanding (though it is rare).
The Following are Text Book Examples:
1- $WLSH - A DOUBLE TOP
2- $SPX - A DOUBLE TOP
3- $NDX - ENDING DIAGONAL AT NEW HIGHS
4- $DJIA - A HEAD & SHOULDERS
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