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Pattern

Throw-over

A throw-over is a brief penetration of a pattern boundary right at the end of a move, most often the upper trendline of an ending diagonal or the upper parallel of a wave channel. Instead of respecting the line, the final wave pushes slightly beyond it, runs out of fuel, and reverses. Elliott considered the throw-over a completion signal of the pattern: it reflects the last burst of crowd emotion that exhausts the trend. The mirror move at market bottoms, a throw-under, works the same way. What makes throw-overs valuable is their timing precision. When Wave 5 of an ending diagonal pokes through the trendline on fading momentum and then closes back inside the pattern, the reversal that follows is typically fast and retraces the whole diagonal. The trap is treating the throw-over as a breakout; the structure and the momentum divergence tell you it is the opposite.

EXAMPLE

XAUUSD completes an ending diagonal into $2,480. The final push spikes to $2,492, six dollars above the upper trendline, on a clear RSI divergence, then closes back inside the wedge the same day. That throw-over marks the top, and gold gives back the entire diagonal within two weeks.

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