Case Studies:
The best way to understand how this pattern works is to study collection of charts with real life examples.
- Subscribe Now and Start Learning
Media error: Format(s) not supported or source(s) not found
Download File: https://courseone.s3.amazonaws.com/Corrective.Triangles-fake-moves-2.mp4?X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIAJ7NJYFSNWAHAKZZQ%2F20250717%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Date=20250717T191305Z&X-Amz-SignedHeaders=host&X-Amz-Expires=900&X-Amz-Signature=ddd848818658e3eba01fb7f66a0f0f38fef889ab53ecbc81181c41700418e060There are many cases when the final wave e of a triangle plays a fake breakdown extending under support established by the two preceding waves a and c. That move may come as a spiky emotional reaction to important data release only to fool traders and run stop loss orders.That fake move under a strong support quickly reverses and gives birth to a strong rally in direction of the main trend.
There are cases when bears get so weak and frustrated and bulls are so strong that the final subwave e fails to reach the support established by the two preceding waves a and c. In this case even though wave e gets shorter than normal it still should must complete its micro a-b-c structure before a strong rally in direction of the main trend resumes
The best way to understand how this pattern works is to study collection of charts with real life examples.