XAUUSD or simply GOLD is a very lucrative metal and widely traded amongst traders globally. Depending on the traders' discipline, this metal attracted all sorts of traders and many have claimed they 'master' the art of trading gold. Well i do am not a master in trading this metal, however, i could provide a little bit of my current insight of this metal through Elliot Wave Analysis.
A. General View:
1. GOLD (at least for me) has been in an uptrend since 2015 with an all-time high at 2074.89 on 7th Aug 2020. Along the way, GOLD "might" have already completed a 5-wave move up (when i say "might', there's still a chance that the price is still in wave 3)
2. After a 5 wave move up, a correction which consists of A-B-C (or in this case W-X-Y) which spans more than a year now.
3. The correction has been a very complex and has reached the 38.2 retracement of wave 1 to wave 5 in the larger time frame.
4. Most of my charts will on Daily and Weekly time frame.
B. What did i notice?
This complex correction has been developing so long that it confuses me all this while. However, after a 3 wave move correction (a/b/c=W), theoretically, a flat or a triangle will be develop. In this while, i rarely seen a triangle in an X formation, but this might be if the scenario is correct especially with a 3-3-3-3-3 inside.
C. Current view:
Currently price is in the C wave of the last wave (E) of the Triangle. C wave is always a 5 wave move, either a normal one or ending diagonal. C wave also normally reaches the same length of the previous A wave (inside the E wave of the triangle) thus the bullish movement might end approximately at 1870 before the larger Wave Y bearish impulse starts.
D. What to look for?
A completion of the Triangle in the X wave will prove the scenario is correct before the bearish move resumes for wave Y and the projected bearish movement will be 50.0 of the larger wave 1-5. This movement might take place weeks before the triangle is completed.
In conclusion, i might be looking for a 5 wave small move down once the triangle has been completed to join the bearish movement. For day traders and scalpers, there are still chances in the minor c wave of E wave of the triangle when the market opens. Risk and management need to be applied religiously.
That's it for my first post. Any comments are welcome.
Thank you
A. General View:
1. GOLD (at least for me) has been in an uptrend since 2015 with an all-time high at 2074.89 on 7th Aug 2020. Along the way, GOLD "might" have already completed a 5-wave move up (when i say "might', there's still a chance that the price is still in wave 3)
2. After a 5 wave move up, a correction which consists of A-B-C (or in this case W-X-Y) which spans more than a year now.
3. The correction has been a very complex and has reached the 38.2 retracement of wave 1 to wave 5 in the larger time frame.
4. Most of my charts will on Daily and Weekly time frame.
B. What did i notice?
This complex correction has been developing so long that it confuses me all this while. However, after a 3 wave move correction (a/b/c=W), theoretically, a flat or a triangle will be develop. In this while, i rarely seen a triangle in an X formation, but this might be if the scenario is correct especially with a 3-3-3-3-3 inside.
C. Current view:
Currently price is in the C wave of the last wave (E) of the Triangle. C wave is always a 5 wave move, either a normal one or ending diagonal. C wave also normally reaches the same length of the previous A wave (inside the E wave of the triangle) thus the bullish movement might end approximately at 1870 before the larger Wave Y bearish impulse starts.
D. What to look for?
A completion of the Triangle in the X wave will prove the scenario is correct before the bearish move resumes for wave Y and the projected bearish movement will be 50.0 of the larger wave 1-5. This movement might take place weeks before the triangle is completed.
In conclusion, i might be looking for a 5 wave small move down once the triangle has been completed to join the bearish movement. For day traders and scalpers, there are still chances in the minor c wave of E wave of the triangle when the market opens. Risk and management need to be applied religiously.
That's it for my first post. Any comments are welcome.
Thank you