In the last issue, we explored the terminal inclination triangle; today, let us delve into the important concept of the guiding inclination triangle. Although the discovery of the guiding inclination triangle was not originally by Elliott, its frequent appearance in the market has led analysts to have long-standing confidence in its validity.

The guiding diagonal triangle usually presents a 5-3-5-3-5 subdivision wave pattern, which is different from the 3-3-3-3-3 pattern of the terminal diagonal triangle. This structure perfectly aligns with the core idea of wave theory, as its five-wave subdivision conveys a signal of 'continuation', rather than the 'termination' implied by the terminal diagonal triangle.

The key to identifying a guiding tilted triangle lies in observing the characteristics of its fifth sub-wave. Compared to the third sub-wave, the price movements of the fifth sub-wave usually appear to be slower. In contrast, during the development of the first and second waves, we often observe an increase in short-term speed and an expansion of the impact range.

It is worth noting that a leading diagonal triangle often appears at the position of wave 1 in an impulse wave or at the position of wave A in a zigzag correction. This is in stark contrast to a terminal diagonal triangle (which usually appears at wave 5 or wave C). Although both present an ascending wedge shape, the market signals they convey are completely different: one is bullish, the other is bearish.

The uniqueness of the guiding inclined triangle lies in the special overlap of wave 1 and wave 4, as well as the feature of the two boundary lines converging into a wedge shape. These characteristics are quite similar to the terminal inclined triangle, providing valuable clues for identifying market trends.

By deeply understanding the guiding slanted triangle, investors can more accurately grasp market trends, providing strong support for investment decisions. In the complex and ever-changing financial market, this meticulous analytical approach is undoubtedly a sharp double-edged sword, capable of helping us pursue profits while also aiding in risk avoidance.