Trader: Barrier Triangle

Elliott Wave.014-001

Barrier triangles are distinctive in that one of the trendlines is horizontal and as such, points in the direction of the continuation (triangles are continuation patterns.

A barrier triangle has the same characteristics as a contracting triangle except that waves B and D end at essentially the same level. Bob Prechter (author, The Elliott Wave Principle book) says he has yet to observe a 9-wave barrier triangle, implying that this form may not extend.

When wave 5 follows a triangle, it is typically either a brief, rapid movement or an exceptionally long extension.