Silver Rolling Off the Cliff

FX_IDC:XAGUSD   Silver / U.S. Dollar
Silver             has begun to complete its correction after obtaining the high post BREXIT. Similar to gold             , silver             is currently in a bearish trend . We have broken technical trend resistance some 5 days ago, but silver             has been hanging around a little bit with gold             as the bulls take their time to lose confidence.

Also similar to gold             , we are long term very bullish , but there must be a consolidation on this movement before any further upward movement can continue.
sir, for my curosity, can we count this chart as ABC(1,2,3,4,5) in which C is having 5 waves in an ending diagonal. I will welcome your remarks.
+1 Reply
michael.j.macauley sanjay.prajapat.311
Sanjay, I would say the answer to your question depends upon if you are talking about the whole chart, or if you are talking about a segment within it. If we were to consider the diagonal starting in July to be an ending diagonal, I'm not quite sure where points A and B would be placed. I agree with you that it does look like and behave like a diagonal. I think you can count it that way. However, I'd be concerned about it being an ending diagonal, rather than a leading one. I think it is a leading diagonal into A-B-C following the impulse wave up. Thanks for your comments and views!
+1 Reply
sanjay.prajapat.311 michael.j.macauley
thanks for answer sir, I may be wrong. I am in a learning curve, will improve with people like you.
+1 Reply
michael.j.macauley sanjay.prajapat.311
I am here to learn as well Sanjay, so I am happy to have you interacting and asking questions. I prefer to be second-guessed because I could always be wrong.
sanjay.prajapat.311 michael.j.macauley
As per your thought, I worked out that this chart can also be labeled as leading expanding diagonal and found that it respects all the rules so, your lableling is correct. but how much it is going to correct i can't worked out....
Also I would like to know how you work with RSI and waves.
michael.j.macauley sanjay.prajapat.311
This is where I always look to the higher cycles, some of which aren't actually drawn on the chart above. If we look at the monthly chart we just completed A-B-C after the 1-2-3-4-5 Impulse in a bearish direction. I'm looking for this market, at the higher cycle levels, to enter a combination wave before taking off. If we look at, for example, this 100 year chart: http://www.macrotrends.net/1470/historical-silver-prices-100-year-chart we can actually see the waves going back to 2000. Starting in 2000 you can see a 1-2-3-4-5 followed by an incomplete A-B-C, where we appear to be leaving B and entering C.

I don't use the RSI to count the waves very often. I use it more for understanding where likely next turning points will be. However, you can use it to some degree because as you can see the RSI maxes out at high level cycle maximums. We'd be looking for turning points in the RSI rather than looking at its value.
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