ENDING DIAGIONAL .SILVER IN INFALATION The Ending Diagonal is a pattern the occurs
when the preceding move as Elliott puts it
has gone „to far too fast“.
This pattern is mostly found in the fifth wave,
at the end of an impulse. It can also happen
as a final Wave C in a ABC-Correction.
Rules:
• Wedge shape with contracting trendlines
• Wave 4 overlaps with Wave 1, but does not
go beyond the start of wave 2
• Wave 1 is the longest wave and wave 3
can’t be shorter than wave 5
• Structure is normally 3-3-3-3-3, each
waves subdivides into a ZigZag a-b-c or
w-x-y
It is also accompanied by divergences in RSI
or MACD indicator.
Ending Diagonal
❗ Watch out, often the fifth wave of the Ending Diagonal makes a fake breakout above the wedge
forming trendlines.
➔ Because Ending Diagonals only occur at the end of a move, the following trend change and new
direction of price action leads to great trade opportunities.
