As of 08/12/2022   Indus: 33,761 +424.38 +1.3%     Trans: 15,147 +74.16 +0.5%     Utils: 1,042 +15.91 +1.6%     Nasdaq: 13,047 +267.38 +2.1%     S&P 500: 4,280 +72.88 +1.7%	YTD -7.1%   -8.1%    +6.2%   -16.6%   -10.2%	Targets    Overview: 07/28/2022     34,500 or 31,850 by 09/01/2022   16,300 or 14,300 by 09/01/2022   1,075 or 990 by 09/01/2022   13,600 or 12,000 by 09/01/2022   4,325 or 4,000 by 09/01/2022
CPI (updated daily): on 7/15/22

As of 08/12/2022   Indus: 33,761 +424.38 +1.3%     Trans: 15,147 +74.16 +0.5%     Utils: 1,042 +15.91 +1.6%     Nasdaq: 13,047 +267.38 +2.1%     S&P 500: 4,280 +72.88 +1.7%	YTD -7.1%   -8.1%    +6.2%   -16.6%   -10.2%
Targets    Overview: 07/28/2022     34,500 or 31,850 by 09/01/2022   16,300 or 14,300 by 09/01/2022   1,075 or 990 by 09/01/2022   13,600 or 12,000 by 09/01/2022   4,325 or 4,000 by 09/01/2022
CPI (updated daily): on 7/15/22

Bulkowski on the Reverse Symmetrical Triangle Elliott Wave Pattern

This page describes the reverse symmetrical triangle pattern of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

The figure to the right shows what a reverse symmetrical triangle looks like in a bull market. The reverse symmetrical triangle is a region of horizontal price movement, a consolidation of a prior move, and it is composed of "threes." That means each of the A-B-C-D-E waves have three subwaves. I labeled the B subwaves with red numbers, 1, 2, and 3, as an example.

In a reverse symmetrical triangle, the shape of the pattern follows two diverging trendlines, shown here as red lines. A reverse symmetrical triangle is more commonly known as a broadening top or broadening bottom. According to Frost and Prechter, "There are no variations on the rarer expanding triangle," which is another name for the reverse symmetrical triangle. I have not looked for the 3-3-3-3-3 combination, but I do know that other broadening patterns exist. Check out: right-angled broadening top, ascending, right-angled broadening top, descending, broadening wedge, ascending, and broadening wedge, descending.

A reverse symmetrical triangle in a bear market is an inverted picture of a bull market triangle. The price action swings from trendline to trendline, and diverges. The A-B-C-D-E waves subdivide into threes, forming a 3-3-3-3-3 configuration.

Reverse Symmetrical Triangle Rules

The reverse symmetrical triangle has rules that govern its shape. They are listed here.

• The waves bottom and top out following two diverging trendlines.
• Five waves compose the reverse symmetrical triangle (A-B-C-D-E).
• Each of the A-B-C-D-E waves are composed of three subwaves, so it has a 3-3-3-3-3 configuration.

-- Thomas Bulkowski

See Also

• A broadening top has price entering the pattern from the bottom.
• A broadening bottom is a reverse symmetrical triangle.
• Here is the main resource for Elliott wave information.
• Support and resistance. Learn the various types.
• Market direction. 7 tips to determining.
• Trading cycles help time your entries and exits.
• Trend change detection using a triangle apex.

 

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