Leading & Ending Diagonals — TheValueTrader Research

SHAPE — LEADINGUsually contracting (expanding variants exist)

SHAPE — ENDINGUsually contracting

LEADING DIAGONAL — POSITIONWave 1 or Wave A only

ENDING DIAGONAL — POSITIONWave 5 or Wave C only

LEADING — SUBDIVISION5-3-5-3-5 (classic form)

ENDING — SUBDIVISION3-3-3-3-3

WAVE 4 / WAVE 1 OVERLAPExpected, not forbidden

φ 01

What Is a Diagonal?

A diagonal is a special type of motive (impulsive) wave. Like a normal impulse, it still has 5 sub-waves in the direction of the move — but the two boundary lines drawn through waves 1-3-5 and waves 2-4 form a wedge-shaped channel, instead of the roughly parallel channel a standard impulse draws.

Diagonals are also restricted in where they're allowed to appear: normally only in the Wave 1 or Wave A position (Leading Diagonal), or the Wave 5 or Wave C position (Ending Diagonal). Positions 2, 3, 4, and B require a standard structure — diagonal-like sub-structures inside a complex B wave are occasionally debated, but they aren't the pattern this guide is about. The two types also tend to look different on a chart, as the next two sections show.

φ 02

Leading Diagonal — The Opening Wedge

FIG. 1 — A Leading Diagonal in its classic form: a contracting channel, narrower by Wave (5) than at Wave (1)/(2). Expanding variants exist but are less common.

Appears normally in the Wave 1 position of an impulse, or the Wave A position of a zigzag
Classically subdivides 5-3-5-3-5 in the Elliott/Prechter tradition — waves 1, 3, and 5 of the diagonal are themselves five-wave structures. Some later Elliott literature (e.g. Neely's NEoWave) also accepts a 3-3-3-3-3 subdivision here; this guide follows the Prechter convention.
Usually contracting, as in Fig. 1 above — Wave 4 still overlaps Wave 1's territory either way
Signals that a large new move has just begun — often followed by a sharp, deep Wave 2

φ 03

Ending Diagonal — The Closing Wedge

FIG. 2 — An Ending Diagonal's classic contracting wedge, narrower by Wave (5) than at Wave (1)/(2), with a brief throw-over past the upper line before the sharp reversal.

Appears normally in the Wave 5 position of an impulse, or the Wave C position of a correction
Subdivides 3-3-3-3-3 — every one of its five sub-waves is itself a three-wave structure
Volume often diminishes as the pattern progresses
Often finishes with a brief "throw-over" — a small break past the upper (or lower, in a decline) trendline — right before a swift, sharp reversal
Usually signals exhaustion of the larger trend, rather than its continuation — though not every ending diagonal is followed by a dramatic reversal

φ 04

Leading vs. Ending — Side by Side

Leading Diagonal

Opens a Move

PositionWave 1 or A

Subdivision5-3-5-3-5

SignalsA new move beginning

Typical aftermathSharp, deep Wave 2

Ending Diagonal

Closes a Move

PositionWave 5 or C

Subdivision3-3-3-3-3

SignalsTrend exhaustion

Typical aftermathSwift, sharp reversal

Shape Isn't the Rule — Position Is

Both types are usually drawn as a contracting wedge, as in Fig. 1 and Fig. 2 — expanding variants exist for either but are less common. Don't rule a count in or out on channel shape alone; the position (Wave 1/A vs. 5/C) and the subdivision count (5-3-5-3-5 vs. 3-3-3-3-3) are what actually define which is which.

φ 05

Spotting One on the Chart

The boundary lines form a wedge, usually contracting for either type — expanding variants exist but are less common
Wave 4 dips into Wave 1's price territory — expected here, unlike a standard impulse
The position fits: normally Wave 1, A, 5, or C — not 2, 3, or 4
The internal wave count matches: 5-3-5-3-5 for a leading diagonal, 3-3-3-3-3 for an ending diagonal
For an ending diagonal specifically: often-fading volume, and ideally a throw-over right before the reversal

φ 06

How This Connects to TVT's Rules

Recognizing a diagonal changes how the rest of the wave count — and TVT's trim/re-add framework — should be read:

LEADING DIAGONAL IN WAVE 1Expect a sharper Wave 2 — size the starter position conservatively

ENDING DIAGONAL IN WAVE 5This is exactly where the aggressive Wave 5 trim applies — and the reversal can come fast

ENDING DIAGONAL IN WAVE CSignals the ABC correction is genuinely close to done

Related Guides

See the Elliott Wave Beginner Guide for the standard impulse rules this pattern is the exception to, the Trimming & Re-Entry Guide for what to do in Wave 3/4/5, and the ABC Pullback Guide for what typically follows an ending diagonal in Wave 5.

φ 07

TVT Diagonals Framework — Quick Reference

Leading

Wave 1/A · 5-3-5-3-5

Ending

Wave 5/C · 3-3-3-3-3

Overlap

Expected, not a violation

Ending Diagonal Signals

Trend exhaustion

This content is for educational purposes only and reflects my personal perspective and experience using Elliott Wave Theory. It is not financial advice, investment advice, or a recommendation to buy or sell any security. All investing involves risk, and you are responsible for your own decisions. Always do your own research.