Could This Complex Correction Be Hiding a Triangle?
Hey traders! Let’s talk gold (XAU/USD). After a textbook impulsive move up, we’ve entered a complex correction that appears to be unfolding as a potential Wave 4 triangle, more specifically, a Y wave triangle within a W-X-Y corrective structure.
Why It Matters:
Wave 4 corrections are notorious for being tricky, often appearing as sideways or choppy movements. This time, we’re seeing a potential contracting triangle form, with clear sub-waves labeled A through E. If this is correct, Wave Y is taking shape as a triangle, suggesting consolidation before the next leg higher—Wave 5.
Clues Supporting the Triangle Scenario:
Multiple overlapping waves, typical of triangle structures.
Clear labeling of internal sub-waves A-B-C-D-E.
Fibonacci confluence around 61.8% of key legs (D vs B, E vs C), adding confidence.
Price compression near the apex of the triangle—a classic signal that a breakout may be near.
What Traders Should Watch:
A clean break above the upper boundary of the triangle would strongly support the beginning of Wave 5.
Confirmation might come from volume spikes or momentum indicators turning bullish.
Invalidations occur if price breaks down through the E-wave low.
Final Thought:
If this triangle pattern confirms, it sets up a high-probability Wave 5 breakout. While patience is required during triangle formations, the payoff often comes with a strong, impulsive move once the structure completes.
Let me know your thoughts, and don’t forget to like and follow for more Elliott Wave insights!
Hey traders! Let’s talk gold (XAU/USD). After a textbook impulsive move up, we’ve entered a complex correction that appears to be unfolding as a potential Wave 4 triangle, more specifically, a Y wave triangle within a W-X-Y corrective structure.
Why It Matters:
Wave 4 corrections are notorious for being tricky, often appearing as sideways or choppy movements. This time, we’re seeing a potential contracting triangle form, with clear sub-waves labeled A through E. If this is correct, Wave Y is taking shape as a triangle, suggesting consolidation before the next leg higher—Wave 5.
Clues Supporting the Triangle Scenario:
Multiple overlapping waves, typical of triangle structures.
Clear labeling of internal sub-waves A-B-C-D-E.
Fibonacci confluence around 61.8% of key legs (D vs B, E vs C), adding confidence.
Price compression near the apex of the triangle—a classic signal that a breakout may be near.
What Traders Should Watch:
A clean break above the upper boundary of the triangle would strongly support the beginning of Wave 5.
Confirmation might come from volume spikes or momentum indicators turning bullish.
Invalidations occur if price breaks down through the E-wave low.
Final Thought:
If this triangle pattern confirms, it sets up a high-probability Wave 5 breakout. While patience is required during triangle formations, the payoff often comes with a strong, impulsive move once the structure completes.
Let me know your thoughts, and don’t forget to like and follow for more Elliott Wave insights!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.