Eliot thinks that the oblique triangle is a special form of pushing waves, which mainly appears in the position of the fifth wave. It can also be divided into ascending oblique triangle and descending oblique triangle. Most of the reasons are that the market runs too fast, rises too fast or catches up with the bottom in the form of consumption.

The oblique triangle can only appear in Push Wave 5, and before it appears, there is usually a very rapid rise and fall, and then its trading volume gradually decreases, and the fluctuation range slows down, and it evolves into an oblique triangle. When the inclined triangle appears in the head, it implies that the stock price will reverse downward, and the inclined triangle appears on the way down, which implies that the stock price will reverse upward. As shown in figure 4-4:

Figure 4-4

The characteristics of an inclined triangle are as follows:

(1) When the fifth wave becomes an oblique triangle, it can usually be divided into five sub-waves at the next level, and the fifth wave is contained in two converging straight lines.

(2) The five secondary waves in the fifth wave can only be divided into three primary waves, and other push waves are no exception, with a trend of 3-3-3-3-3.

(3) The bottom of the fourth wave in the fifth wave of an oblique triangle can be lower than the vertex of 1 wave, which is the only exception in the wave iron law.

2. Fault model

Failure form is also called exhaustion form. The failure pattern usually appears in The 5th Wave, and the high point of The 5th Wave is lower than the third wave of bull market, forming a double-headed pattern; In the bear market, the The 5th Wave low is higher than the third low, forming a double bottom pattern. In most cases, the form of exhaustion is caused by sudden and significant changes in fundamentals, such as interest rate changes, wars, coups, etc. But if there is no third wave of excessive rise, only fundamental changes will make it difficult for The 5th Wave to fail. Actually. This failure mode is double-top or double-bottom failure mode, which has two main characteristics:

The 5th Wave in (1) fault mode can be divided into five sub-waves.

(2) The failure pattern in the bull market reflects the potential weakness of the market; The failure form in a bear market reflects the potential power of the market, which is morphologically called M-head or W-bottom. As shown in Figure 4-5:

Figure 4-5