Pattern
Ending Diagonal
A wedge-shaped pattern appearing in the Wave 5 or Wave C position. It consists of five waves where each sub-wave subdivides into three (3-3-3-3-3). Both trendlines converge, and Wave 4 overlaps Wave 1 territory. It signals exhaustion of the larger trend.
EXAMPLE
XAUUSD forms an ending diagonal in Wave 5 where price squeezes between converging trendlines before a sharp reversal.
RELATED TERMS
Diagonal
A motive pattern with overlapping waves that forms a wedge shape. Leading diagon...
Wave 5
The final impulse wave in the motive sequence. Wave 5 completes the trend and is...
Wave C
The final wave of a corrective sequence. Wave C always subdivides into five wave...
Truncation
When Wave 5 fails to exceed the end of Wave 3. Truncations occur after an extrem...