Triangles move price sideways and take up time. Triangles 'often' precede the last wave in the direction that price entered the triangle. Diagonals slant either with or against the trend. Like triangles, diagonals cannot be called until all five waves are securely made in price.
There is currently a valid "running triangle" in the SPY 30-min chart, above. That is because the Ⓔ wave has crossed over the prior high on 14 Nov to be corrective to it. Sometimes - when a triangle 'fails' - the same three-wave sequences that make a triangle can also be used to build 3-3-3-3-3 diagonals.
There is currently not a valid diagonal, but if the Ⓒ wave breaks lower before a new higher high than the Ⓑ wave, then one might look for the expanded diagonal down for a larger expanded flat, lower. In that case, the wave sequence shown as (w),(x),(y),(x),(z) = (i) - (v) of the diagonal.
Have a good rest of the morning.
TraderJoe
SPY 30-min: the potential downward diagonal has been fully resolved. It has invalidated. This leaves only the triangle.
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TJ
Hey TJ, a potential bigger downward diagonal with your three-wave circle c as 1 and now a 2 in progress could still resolve, couldn't it? Consequently, invalidation would occur if prices go over the top...
DeleteKind regards
SPY has just gone over the high.
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TJ
SPY 30-min: with SPY over the high, technically, that's all that is needed, but it could go further. The only other 'extending alternate I see would be a flat, but I need a moment to sketch that out. TJ.
ReplyDeleteHere is that Flat wave alternate. First confirmation step is trading below ES 4,512.
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TJ
SPY 30-min: here is the cleaned-up chart as of the close. Because of the upper declining triangle trend-line back-test and bounce, today's new high might only be wave i of ⑤, and the triangle back-test wave ii of ⑤.
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The alternate is the larger flat we showed in the comments. Maybe some clues will come in the Sunday overnight.
TJ
A new post is started for the next day.
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