10 Year U.S. Notes Looking Bullish - Elliott Wave Analysis
Gregor Horvat | Jun 22, 2020 10:44AM ET
10-Year US notes are in a bullish trend, now unfolding final stages of correction in wave (4). We see a contracting price activity within a fourth wave, which looks like a triangle. Once all legs are visible within a triangle: A-B-C-D-E, and we see a rise above the upper triangle line, that is when fifth wave higher can be underway. Wave (5) can reach 142'0/144'0 zone.
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
An example of a triangle pattern:
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