The Silent Power of Wave 4: Why You Shouldn’t Ignore Triangles

Markets often scream during impulse waves but whisper during corrections. Yet it’s in those quiet phases—especially Wave 4 corrections—that the next big move is born. HERO MOTOCORP’s current price action may just be one of those setups that rewards the patient.

Spotting the Triangle in Wave 4
After a strong Wave 3 high at ₹4,454.60, the price began consolidating. Instead of a sharp drop, a sideways grind with overlapping price action began unfolding—classic signs of a triangle possibly forming. So far, the internal structure appears to be evolving as an (A)-(B)-(C)-(D)-(E) formation, although the triangle is not yet confirmed. The final leg (E) is pending, and until a proper breakout with impulsive character occurs, this remains a working hypothesis.

The retracement zone between 0.236 (₹4,284.75) and 0.382 (₹4,179.70) of Wave 3 has held price so far. This shallow pullback supports the idea of a triangle, which is typically more time-consuming than other corrective forms.

RSI Divergence: A Sign of Weakness
There’s also a noticeable RSI divergence in play. While price made a higher high, RSI printed a lower high—a clue that momentum is cooling. This supports the idea that Wave 3 ended and Wave 4 is underway. Momentum cooling during a triangle formation is common, as the market pauses before its next move.

Volume Behavior
Volume spikes during impulsive waves and contracts during consolidations. HERO’s chart reflects just that—volume expanded strongly during Wave 3 and has dried up during this suspected Wave 4. This aligns well with triangle behavior, where uncertainty reduces participation before the breakout.

Invalidation Level and Risk Clarity
₹3,994.10—Wave 1’s top—acts as the invalidation level. If price breaks below this, the current wave structure becomes invalid and must be recounted. As long as this level holds, the bullish bias remains intact. A breakout above the Wave 3 high with conviction could mark the beginning of Wave 5.

Since Wave 4 hasn’t completed, potential targets for Wave 5 can only be projected once it ends. Typically, Wave 5 can extend to 1x or 1.618x of Wave 1, measured from the end of Wave 4—once its final low is in place.

Final Thoughts
Triangles are often ignored. But in Elliott Wave Theory, they are hidden launchpads—silent phases that precede explosive moves. HERO MOTOCORP might be presenting one such opportunity. If the triangular structure completes cleanly and holds key levels, a fresh impulse could be unfolding.

Chart will be updated as price action evolves.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.