One of the most difficult patterns to be traded regardless of the financial product involved (foreign exchange, binary options, equities, etc), is the triple combination. Like the name suggests, we are talking about one of the most complex, if not the most complex structure to be find out when trading with Elliott Waves patterns.

The name of the pattern comes from the fact that we have three different corrective waves that are going into the same direction (upward or downward) and in between them, there are two intervening waves, called x waves, that are still corrective in nature. All in all, we are talking here about 5 different corrective waves, 3 of them going against the previous trend before the triple combination to start and 2 of them going in the same direction as the previous trend prior to the triple combination.

## Types of Triple Combinations Ending with Contracting Triangles

I would say the most common triple combinations, like in the case of double combinations as well, are the ones ending with a contracting triangle that acts as a reversal pattern.However, it is not mandatory for the third correction to be a triangle as it can be simply a flat or a zigzag. More details to be found out on the two videos that are coming with this educational series and the types of corrective waves to look for here are the ones treated on the Binary Options Academy: flats, zigzags or triangles.

These kind of patterns are tricky as usually they are being formed as the entire leg of a contracting triangle and even of an expanding triangle. In order to properly identify such a construction one needs to remember that they are ending almost always with a contracting triangle so the way to go is to look on different time frames for identifying a triangle and then analyze the move prior to the triangular formation.

If there are multiple corrective waves until the triangle is forming, then chances are we are having a triple combination.

It is important as by the time the b-d trend line of the triangle is broken it means that the triple combination ended and options can be traded. If the triple combination is in a bullish trend, then put options should be traded by the time the b-d trend line is broken. The opposite is true as well, as call options should be traded if the b-d trend line is broken after a bearish triple combination.

Price action that follows a triple combination is most of the time related to the golden ratio, the famous now 61.8%level. In this case, the thing to do is to take a Fibonacci retracement tool and drag it from the beginning of the pattern until its very end (careful here as the end of the pattern is with a triangle so the Fibonacci should be placed at the end of the triangle, namely at the end of wave e) and look for the level to be reach.

### Put and Call Options with Tripple Combinations

A triple combination it is rarely completely retraced and if it is appearing as a leg of a triangle then by the time the 61.8% level is retraced options can be traded. If the retracement is bullish, then put options should be traded, while on a bearish retracement call options should be traded by the time the 61.8% level is reached. Trading binary options is all about finding the perfect striking price and then setting the expiration date accordingly. This is why it is vital when setting the striking price to look at the time frame the pattern is being found.

Elliott Waves theory goes hand in hand with Fibonacci and without a proper understanding of the Fibonacci levels trading these patterns will make no sense. In a triple combination, depending on the retracement level in the simple corrections, we know what to look for and anticipate the next move. For example, let’s assume the first correction in a triple combination is a flat, then we have the x wave and the second correction is a zigzag. Already from that moment a trader should now that a triple combination is in progress and should follow as double combinations are almost always ending with a triangle as well.

That is the clue that one needs that a triangle is coming and, if the pattern is forming on the bigger time frames, then trading that triangle at the end of the triple combination is possible too.

All in all, trading with Elliott Waves theory allows one to project future price movements based on the ones on the left of the chart and by the time a wave is completed, a new one begins.