Barrier Triangle


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Summary of Barrier Triangle

A barrier triangle resembles a contracting triangle but features a horizontal boundary line in the direction of a larger trend. It consists of five overlapping waves, labeled A, B, C, D, and E, each of which breaks down into a three-wave substructure.

Barrier triangles are characterized by decreasing volume and volatility and typically appear before the final wave in a larger pattern, serving either as a fourth wave in an impulse or a B wave in a correction. The sub-waves within a barrier triangle usually exhibit a 1 to 0.618 ratio relative to one another.


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