NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles

June 1, 2020

NeoWave. Part 23. Progress labels and their application to trianglesMikhail Hypov

I continue covering progress labels. Rules, proportions, position

indicators in various types of triangles.

Dear friends!

In the previous articles, I covered progress labels in flat corrections. Today, I deal with the application of progress labels to different types of corrections.

If you are not familiar with the NeoWave theory, I recommend you to read all the articles, starting from the first one, in the NeoWave series based on Glenn Neely’s book Mastering Elliott Waves.

[Neo Wave theory. Part 1. Rules for creating charts][1].

[Neo Wave theory. Part 2. Basic information on Polywaves and Structure Labels. ][2]

[NeoWave. Part 3. Retracement Rule 1.][3]

[NeoWave theory. Part 4. Retracement Rule 2.][4]

[NeoWave theory. Part 5. Retracement Rule 3.][5]

[NeoWave. Part 6. Retracement rule 4. Conditions “a” and “b”][6].

[NeoWave. Part 7. Retracement rule 4. Conditions “c”, “d” and “e”][7].

[NeoWave. Part 8. Retracement rule 5. Conditions “a” and “b”][8].

[NeoWave. Part 9. Retracement rule 5. Retracement rule 6, condition “a”][9].

[NeoWave. Part 10. Retracement Rule 6. Conditions “b”, “c”, and “d”][10].

[NeoWave. Part 11. Retracement rule 7.][11]

[NeoWave. Part 12. Impulsions and the rules to analyze impulse wave patterns. ][12]

[NeoWave. Part 13. Corrections. Rules to identify a correction.][13]

[NeoWave. Part 14. Triangles. Rules to identify triangles.][14]

[NeoWave. Part 15. Basic and advanced rules of logic to analyze triangles][15].

[NeoWave. Part 16. Extended rules of logic for Flats and Zigzags.][16]

[NeoWave. Part 17.][17][ ][17][Extended rules of logic for complex corrective patterns.][17]

[NeoWave. Part 18. Rules of complexity and balance. Compaction procedures. Power ratings.][18]

[NeoWave. Part 19. Progress labels applied in trending impulses][19].

[NeoWave. Part 20. Application of progress labels to terminal impulses.][20]

[NeoWave. Part 21. Channeling in impulses and Fibonacci relationships.][21]

[NeoWave. Part 22. Progress labels in flat corrections][22].

Progress labels in triangles and the application rules

Remember, progress labels are letters (A) – (E) that mark waves within triangle patterns. Unlike flat corrections, covered in the previous articles, triangles must observe many rules and regularities. First, I will cover general rules for progress labels that must be observed in all types of triangles:

Wave (D) is the largest in any triangle.
Three legs of the same degree within a triangle can not be equal in price (+/-5%).
Never can any leg, other than wave (E) of a contracting triangle be itself a contracting triangle.
In expanding triangles, only four of a possible five retracements (including the pattern of the same degree just before the triangle started) needs to be 100% or more.

Progress labels in Limiting Triangles

Remember, all limiting triangles have a number of unique features. Namely, wave (E) concludes well before the apex point of the triangle is reached (breaking through the channel border). The apex of the triangle should complete in a time zone equal to 20-40% of the time consumed by the triangle added to the end of the (E) wave. I covered triangles in detail in [Part 14.][14]

As for the progress labels, all limiting triangles, irrespective of their variation, must observe the following rules:

The apex of the Triangle has the greatest tendency to complete around the 38.2% zone (38.2% is added to the end of wave (E)).
In Limiting Triangles, the thrust __is usually limited to the widest leg of the Triangle (+ /- 25%). Only in rare cases, or when the triangle falls into the “abnormal” classification, can the thrust __exceed the above limits. A state of abnormality occurs when the (E) wave fails to complete in the 61,8% time zone of the widest leg within the triangle.
Contracting limiting triangles take place in only two progress label positions: as wave 4 in impulses or wave (B) in a correction. In rare cases, the triangle occurs as the last (B) wave or the 4th wave before a final major top or bottom in the market.

Before I go on to explain examples, I want to note an important detail. This article contains 18 charts, they all are drawn rather than discovered in the real Bitcoin price chart. I suggest you try to find an example, which will correspond to the progress labels found in the article. This is a very useful skill for a trader to be able to discover patterns and correctly interpret them in a market that is not ideal. The research data can be found here, on the [LiteForex][23] platform.

An example of how to apply progress labels to limiting triangles

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][24]

The above chart schematically outlines a limiting triangle. According to the above rules for a limiting triangle, its apex point at the end of the green zone, level 38.2%. Besides, the thrust following the triangle is in the grey horizontal zone, which is the price projection of the widest wave (B). That is the trust is smaller than wave (B) in price.

Progress labels for a Horizontal Triangle

Each leg of this type of Triangle should be at least 38.2% of the previous leg (excluding wave (E)). I grouped the rest of the recommendations according to the segment of the triangle that is analyzed.

Progress labels for wave (A) in the horizontal triangle

The (A) wave should be neither the largest nor the smallest wave in the pattern.
The (A) wave should not be less than 50% of the wave (B).
If wave (A) is smaller than wave (B), wave (A) will most likely be a type of flat and wave (B) - a zigzag, or if wave (A) is a simple zigzag, wave (B) will most likely be a complex double pattern, it will hardly be a triple formation.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][25]

The above chart displays a horizontal triangle, where wave (A) is neither the biggest nor the smallest wave in the pattern. Besides, it is a little more than 61.8% of the C wave, which corresponds to the above rules.

Progress labels for wave (B) in the horizontal triangle

If wave (B) is smaller in price than wave (A), then all the other patterns must be smaller than the previous segment.
If wave (B) is bigger than wave (A), the chances are very small (but do exist) that wave © may be slightly larger than wave (B).
Wave (B) should not be less __ than 38.2% or more __ than 261.8% of wave (A).
If the © wave is larger than wave (B), it is mandatory __ that wave (D) should be smaller than wave ©, otherwise, it is an expanding triangle.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][26]

In this horizontal triangle, wave (B) is almost 161.8% of wave (A), which is within the acceptable range of 38.2% and 261.8%. Wave C is less than wave (B), wave (D) is less than wave ©, and wave (E) is less than wave (D).

Progress labels for wave © in a horizontal triangle

This wave is the last segment that is likely to be larger in price than the previous wave in a horizontal triangle. It rarely happens, but it still possible. If wave © is bigger than wave (B), the trendline will be drawn across waves © and (E).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][27]

The chart roughly outlines an example of a contracting triangle, where wave © is greater than wave (B). As you see, the trendline is drawn across the endpoints of waves © and (E).

Progress labels for wave (D) in a horizontal triangle

Wave (D) should be between 38.2% and 99% of wave ©. Wave (D) may take more time than wave (С), but should not be of greater complexity level.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][28]

The chart displays a horizontal triangle, where wave (D) should be a little more than 80% of wave (С).

Progress labels for wave (E) in a horizontal triangle

Wave (E) must __ be shorter in price than wave (D). It can be shorter or longer in time than wave (D), but should not be the longest wave in the pattern.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][29]

Wave (E) is about 61.8% of the previous wave, wave (D). It is also shorter than wave (D), which is clear from the chart when wave (E) is compared to the time taken to form wave (D), marked with the red vertical zone.

Progress labels for an Irregular Triangle

Remember, the typical feature of an irregular triangle is wave (B) that should be greater in price than wave (A). After wave (B), all waves are continuously smaller until the Triangle is over.

Progress labels for wave (A) of an irregular triangle

Wave (A) can be any corrective pattern except __a triple zigzag or an elongated flat.

Progress labels for wave (B) of an irregular triangle

Wave (B) will probably not be much more than 161.8% of wave (A) and must not be more than 261.8% of wave (A)
Wave (B) shouldn’t be greater than 61.8% than the preceding impulse wave.
If wave (A) is a monowave, wave (B) should be subdivided, it is likely to be a zigzag. If wave (A) is a flat, wave (B) is likely to be a simple zigzag. Besides, wave (B) can be any corrective pattern except a triangle.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][30]

The above chart displays an irregular triangle. Note that wave (B) is greater than the wave (A). However, wave (B) is not more than 161.8% of wave (A).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][31]

There is also met another requirement, wave (B) is less than 61,8% of the previous impulse wave.

Progress labels for wave © in an irregular triangle

Wave © must be shorter than wave (B) but must retrace at least 38.2% of wave (B).
The lowest point of wave © often falls into the price zone of wave (A).
In complex triangles, if wave (B) was a double zigzag, wave c should be a zigzag or a flat with an elongated © wave.
If wave (B) was a zigzag, then wave © will probably be a flat (of any type) or a monowave.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][32]

In our example, wave © is smaller than wave (B), but it retraces at least 38.2% of wave (B).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][33]

The lowest point of wave © (marked with the red circle) falls into the price zone of wave (A) (green area in the chart).

Progress labels for wave (D) in an irregular triangle

Wave (D) must __be shorter than the wave (С). It may consume more time than wave (С).
Wave (D) must retrace at least 38.2% of wave (С).
The (D) wave can be any corrective pattern (except for a triangle) as long as it alternates with wave (С) (for example, if wave (С) is a zigzag, the (D) wave should be a flat).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][34]

As the above rules suggest, wave (D) should be between 38.2% and 100% of wave ©.

Progress labels for wave (E) in an irregular triangle

The (E) wave must __be smaller than wave (D) and the probabilities greatly favor that the (E) wave will be the smallest wave (price-wise) in the triangle. It does not have to retrace the (D) wave by any specific amount, but it must move in the opposite direction of the (D) wave by at least one tick
Wave (D) can be a triangle, but this rarely occurs in limiting triangles.
If the (B) wave in a zigzag of one larger degree, then the (E) wave should conclude at 61.8% of the entire zigzag. Therefore, when the triangle ends, you can predict the endpoint of the larger zigzag.
If the larger pattern is a flat, the end of the (E) wave will probably be at 61.8% of the wave (A) of the flat.
If the triangle is the 4th wave of an impulse pattern, the (E) wave will likely end at 38.2% or 61.8% of the (A) wave of the triangle.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][35]

It is clear from the above chart that the (E) wave is shorter than wave (D), it is the smallest wave in the triangle, which is clearly seen in the chart. As the triangle in our example is the fourth wave of the impulse, the (E) wave ends at 38.2% of wave (A), according to the rules.

Progress labels in a Running Triangle

The typical feature of a running triangle is the (B) and (D) action. The (B) wave will be longer than wave (A), and the (D) wave will be longer than wave ©. After the running triangle finishes, there is a powerful thrust, which should be between 161.8% and 261.8% of the widest segment of a triangle.

When this type of triangle occurs, frequently it signals that the significant price top or bottom is about to take place. The probability increases when the thrust out of the triangle is more than 200% of the widest segment in the triangle.

Progress labels for wave (A) in a running triangle

Wave (A) should be no less than 38.2% of wave (B). The (A) wave should not retrace much more than 38.2%, or it should not be more than 61.8%, of the previous impulse wave.
Wave (A) is most commonly a flat or a monowave. If it is a zigzag, then wave (B) will need to be a double (and maybe a triple) zigzag. In a running triangle, wave (A) cannot be a double or triple zigzag, a triangle, or a C-extension flat.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][36]

The above chart displays a running triangle. Wave (A) is between 38.2% and 100% of wave (B).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][37]

Wave (A) retraces almost 38.2% of the previous impulse wave.

Progress labels for wave (B) in a running triangle

Wave (B) must __be the largest segment of the triangle.
In polywaves, or more complex triangles, wave (B) can be a zigzag, a double zigzag, or, on rare occasions, a triple zigzag.
If wave (A) is a flat, wave (B) should consume less time than (A). If wave (A) is any other corrective pattern or a monowave, wave (B) should consume more time than (A).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][38]

Wave (B) is the largest segment in the pattern. Its price projection is highlighted with the red area in the chart.

Wave () is likely to complete in the price zone covered by wave (A).

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][39]

Progress labels for wave (D) in a running triangle

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][40]

The end of the (D) wave, marked with the red circle in the chart, exceeds the end of wave (B) (it is marked with the red horizontal line in the chart).

Progress labels for wave (E) in a running triangle

Wave (E) most commonly doesn’t exceed 61.8% of wave (D).
Wave (E) could take a longer period of time than wave (D).
If the running triangle created a larger (B) wave, wave (E) would likely to complete at 61.8% or 38.2% position to the entire larger corrective movement.

![LiteForex: NeoWave theory by Glenn Neely. Part 23. Progress labels in triangles][41]

It is clear from the above chart that the (E) wave concludes within 61.8% of wave (D) (marked with the horizontal green line).

That is all for today. In the next part of the NeoWave series, I will deal with progress labels for limiting and expanding triangles.

Finally, I want to again stress the importance of progress labels, as this information helps not to only identify the patterns but also to make up an accurate forecast. You should also consolidate the learning through practical application. Apply these techniques in practice and test everything in trading. The LiteForex functions are more than enough for this. If you haven’t yet chosen your broker, it’s high time you started trading with [LiteForex][42]. Besides, there is a wonderful opportunity to win a dream house, a brand new car, and cool Apple gadgets in the [dream draw][43] with the total prize fund of 350 000 USD.

I wish you good luck and good profits!

P.S. Did you like my article? Share it in social networks: it will be the best “thank you” :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

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Price chart of BTCUSD in real time mode

![NeoWave. Part 23. Progress labels and their application to triangles][46]

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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www.liteforex.com/blog/for-professionals/neo-wave-theory-part-1-rules-of-creating-charts/
www.liteforex.com/blog/for-professionals/neo-wave-theory-part-2-basic-information-on-polywaves-and-structure-labels/
www.liteforex.com/blog/for-professionals/neowave-part-3-retracement-rule-1/
www.liteforex.com/blog/for-professionals/neowave-theory-part-4-retracement-rule-2/
www.liteforex.com/blog/for-professionals/neowave-part-5-retracement-rule-3/
www.liteforex.com/blog/for-professionals/neowave-part-6-retracement-rule-4-conditions-a-and-b/
www.liteforex.com/blog/for-professionals/neowave-part-7-retracement-rule-4-conditions-c-d-and-e/
www.liteforex.com/blog/for-professionals/neowave-part-8-retracement-rule-5-conditions-a-and-b/
www.liteforex.com/blog/for-professionals/neowave-part-9-retracement-rule-5-conditions-a-and-b-retracement-rule-6-condition-a/
www.liteforex.com/blog/for-professionals/neowave-part-10-retracement-rule-6-conditions-b-c-and-d/
www.liteforex.com/blog/for-professionals/neowave-part-11-retracement-rule-7/
www.liteforex.com/blog/for-professionals/neowave-part-12-impulsions-and-the-rules-to-analyze-impulse-wave-patterns/
www.liteforex.com/blog/for-professionals/neowave-part-13-corrections-rules-to-identify-a-correction/
www.liteforex.com/blog/for-professionals/neowave-part-14-corrections-triangles-rules-to-identify-triangles/
www.liteforex.com/blog/for-professionals/neowave-part-15-basic-and-advanced-rules-of-logic-to-analyze-triangles/
www.liteforex.com/blog/for-professionals/neowave-part-16-extended-rules-of-logic-for-zigzags-and-flat-corrections/
www.liteforex.com/blog/for-professionals/neowave-part-17-extended-rules-of-logic-for-complex-corrections-exceptions-to-the-rules-2020-05-07/
www.liteforex.com/blog/for-professionals/neowave-part-18-rules-of-complexity-and-balance-compaction-procedures-power-ratings/
www.liteforex.com/blog/for-professionals/neowave-part-19-progress-labels-and-application-of-progress-labels-to-trending-impulses/
www.liteforex.com/blog/for-professionals/neowave-part-20-application-of-progress-labels-to-terminal-impulses/
www.liteforex.com/blog/for-professionals/neowave-part-21-channeling-in-impulses-and-fibonacci-relationships/
www.liteforex.com/blog/for-professionals/neowave-part-22-progress-labels-and-their-application-to-flat-corrections/
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