Description
Diagonals are sort of impulsive patterns, which normally occur in terminal waves like a fifth or a C wave. Don’t confuse them with corrective triangles.
Diagonals are relatively rare phenomena for large wave degrees, but they do occur often in lower wave degrees on intra-day charts. Usually Diagonal triangles are followed by a violent change in market direction.
Rules and guidelines
The most important rules and guidelines are:
• It is composed of 5 waves.
• Waves 4 and 1 do overlap.
• Wave 4 can’t go beyond the origin of wave 3.
• Wave 3) cannot be the shortest wave.
• Internally all waves of the diagonal have a corrective wave structure.
• Wave 1 is the longest wave and wave 5 the shortest.
• The channel lines of Diagonals must converge.
• As a guideline the internal wave structure should show alternation, which means different
kind of corrective structures.
In which wave
Diagonal triangles type 1 occur in waves 5, C, and sometimes in wave 1.
Internal structure.
The internal structure of the five waves is 3-3-3-3-3.
