GUIDELINES
1. Alternation - Wave 2 of the grand supercycle is sideways and therefore wave 4 is supposed to be sharp.
2. Ratio analysis - Wave 4 is usually at a fib ratio 0.382 of the whole 5 wave motive cycle.
3. Channeling- The target for wave 5 is at the top of the parallel channel touching wave 1 and3
4. Equality - when wave 3 is extended wave 1 and wave five...
Identifying motive waves is easy, while corrective waves are less identifiable. (Checkanalysis for EURUSD linked below - motive waves)
In this analysis, we are in a corrective wave. To make it easy to understand, I recommend checking the linked Monthly Elliott wave analysis, then the weekly then the daily.
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The pattern cannot be a triangle (3-3-3-3-3) because wave (a) has a five wave sub-structure. This rules out the triangle and flat types of corrections.
A double zigzag is formed because the first zigzag's wave (c) does not reach the target(past wave (a)), therefore, a WXY (double zigzag structure) is formed.
The second zigzag ABC (5-3-5) completes the double...
ELLIOT WAVE IMPULSE WAVE GUIDELINES
1. Alternation - The corrective wave 2 is sharp and therefore we expect wave 4 to be sideways.
2. Channelling - We have put the target of wave 5 on the upper trendline of a channel.
3. Ratio Analysis. In a normal impulse wave, wave 4 is usually at fib 0.382 of the whole 5 wave pattern.
Guidelines 2 and 3 are used to get the...
Though analysis on a Monthly chart the analysis will be relevant to both swing traders, day traders and Intraday Traders because the price is near a strong support zone
XAUUSD broke above the bull flag but quickly wiped out its gains. The upward bias is still favoured as a result of the strong support on the ascending trend line. Although the market may correct to the downside further if the rectangle breaks to the downside.
After such a long wait USDJPY finally broke the monthly symmetrical triangle to the upside. The move retracement may break back inside the triangle, but I will be on the lookout for bullish candlesticks
Gold is in a correction before it rallies again. This will be fundamentally supported by the upsurge of Coronavirus outside China and also the fact that a vaccine is expected in April
Gold is still completing the second leg of the bull flag on the weekly chart and the bulls are taking a breath by forming a symmetrical triangle which if broken to the upside will have a target of around 1650, While the second leg of the bull flag targets 1750. The major resistance zone is 1617. 88 which is the high of a dark cloud cover that formed in March...
