Leading Diagonal vs Ending Diagonal: Key Differences Explained
In Elliott Wave Theory, diagonal patterns are unique formations that resemble wedges and appear at key turning points. These patterns come in two types—leading diagonals and ending diagonals—and knowing how to differentiate them is essential for accurate wave counts.
In this post, we’ll break down their structure, rules, and when they occur in the wave cycle.
What Is a Diagonal Pattern?
A diagonal is a five-wave motive pattern, like an impulse, but with key differences:
- It shows overlapping waves
- It forms a wedge-like shape
- It appears at the start or end of a larger wave sequence
There are two main types:
- Leading Diagonal: Appears at the start of a trend
- Ending Diagonal: Appears at the end of a trend
Leading Diagonal: Explained
Where It Appears: Wave 1 or Wave A
Structure: 5 overlapping waves (1-2-3-4-5)
Wave Relationships:
- Wave 2 can overlap Wave 1
- Wave 4 usually overlaps Wave 1
- Wave 3 is not the shortest, but it can be slower
Meaning: Sign of a new trend beginning, often after a correction
Trading Tip: Breakout from the wedge signals entry into a strong Wave 3 or Wave B
Ending Diagonal: Explained
Where It Appears: Wave 5 or Wave C
Structure: 5 overlapping waves
Wave Relationships:
- Wave 1 is often the longest
- All waves overlap
- Volume usually declines during this pattern
Meaning: Trend exhaustion or climax
Trading Tip: Prepare for a sharp reversal after completion—great for countertrend setups
Visual Differences
| Feature | Leading Diagonal | Ending Diagonal |
|---|---|---|
| Appears In | Wave 1 or A | Wave 5 or C |
| Direction | Beginning of trend | End of trend |
| Wave Overlap | Allowed | Allowed |
| Implication | Trend just starting | Trend about to reverse |
| Momentum | Usually increasing | Usually fading |
How to Identify and Trade Them
- Look for a wedge or narrowing/expanding shape
- Confirm it has 5 waves, not 3 (which would be corrective)
- Use Fibonacci extensions to estimate breakout targets
- Watch for volume clues—low volume often confirms ending diagonals
Mistakes to Avoid
- Confusing a diagonal with a triangle (triangles have 5 corrective waves: A-B-C-D-E)
- Expecting strong breakouts before the pattern completes
- Counting too early—wait for clear 5-wave structure
Conclusion
Understanding the difference between leading and ending diagonals helps you better time trend beginnings and endings. While both patterns form wedge shapes and show wave overlaps, their context and market implications are very different.
Spotting these formations early gives traders an edge—whether riding the start of a trend or preparing for a powerful reversal.
FAQs
What is a leading diagonal?
It’s a 5-wave pattern that appears at the start of a new trend—often Wave 1 or Wave A.
What is an ending diagonal?
A 5-wave pattern that appears at the end of a trend—usually in Wave 5 or C.
How do I know which diagonal I’m seeing?
Look at the wave location—start of trend = leading; end of trend = ending.
Can diagonals appear in all markets?
Yes, they are seen in stocks, forex, crypto, and commodities.
Are diagonals easy to trade?
They can be tricky but offer excellent signals when correctly identified.
