avenezh63

ENDING DIAGONAL PATTERN

Long
FX:EURUSD   Euro / U.S. Dollar
Rules:

Diagonals are always 5 wave structures.
Structure = 3-3-3-3-3
Ending Diagonals happen in Wave 5 of an Impulse or Wave C of a ZigZag or Flat Corrections .
Wave 1, 2, 3, 4 & 5 always subdivide in ZigZag corrections.
Wave 2 Never moves beyond origin of Wave 1.
Wave 3 must go beyond Wave 1.
Wave 4 must move into wave 1 range but not beyond Wave 2.
Wave 5 Stop before reaching end of Wave 3: "Truncation".
In Contracting Diagonals, Wave 3 is always shorter than Wave 1, Wave 4 Shorter than Wave 2, and Wave 5 shorter than Wave 3.
In Expanding Diagonals, Wave 3 is always longer than Wave 1, Wave 4 longer than Wave 2, and Wave 5 longer than Wave 3.

Guidelines:

Wave 1, 3 & 5 are usually divided in ZigZags but may also be an Impulse wave.
In an Impulse, if Wave 3 is not an Extended, then Wave 5 is unlikely to become an Ending Diagonal .
Connecting ends of Waves 1-3 and 2-4 form Contracting or Expanding Wedges .
In a Contracting Diagonal, Wave 5 Usually ends beyond the Wedge Line of Wave 1-3 ("Throw-Over") .
In an Expanding Diagonal, Wave 5 stops just short of reaching the Wedge Line of Wave 1-3.
Please see the chart for more favorable Fibonacci counts for possible Wave terminations.
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