The chart of stock prices adjusted to constant dollars developed by the Foundation for the Study of Cycles shows a contracting triangle as wave (IV). Its lows bottom within the area of the previous fourth wave of Cycle degree, an expanding triangle (see chart below).
Example #2: The 1942 Bear Market Low
In this case, the Cycle degree wave II bear market from 1937 to 1942, a zigzag, terminates within the area of Primary wave  of the bull market from 1932 to 1937 (see Figure 5-3).
Example #3: The 1962 Bear Market Low
The wave  plunge in 1962 brought the averages down to just above the 1956 high of the five-wave Primary sequence from 1949 to 1959. Ordinarily, the bear would have reached into the zone of wave (4), the fourth wave correction within wave . This narrow miss nevertheless illustrates why this guideline is not a rule. The preceding strong third wave extension and the shallow A wave and strong B wave within  indicated strength in the wave structure, which carried over into the moderate net depth of the correction (see Figure 5-3).