Corrective
Contracting Triangle
A five-wave sideways pattern (A-B-C-D-E) where each successive wave is shorter than the previous one, forming converging trendlines. It typically appears in Wave 4 or Wave B position.
EXAMPLE
EURUSD forms a triangle in Wave 4 where Wave A is 80 pips, Wave B is 65 pips, Wave C is 50 pips, Wave D is 35 pips, and Wave E is 25 pips.