Looking at XAUUSD - 30 minute chart here: Appears to be a retracement wave (5-3-5) playing out.
For a pattern (5-3-5 / ), a rule for wave B is that it retraces wave A either 50%, 61.8%, 76.4% or 85.4%, which here it retraced to the .764, or 76.4% which was $1738.415 (The high was $1738.755).
Now for wave C, the rule is that it is either a 61.8%, 100% or 123.6% extension of wave A, making our respective targets: $1714.421, $1699.380, $1690.087.
I personally think we will exceed the 100%, or 1:1 extension of wave A, and go for the 123.6%, or 1:1.236 extension of wave A.
I personally sold at $1738, but even at the current price ($1725), if you were to target the 1:1.236 extension and have a stop loss slightly above the height of wave B, it would have a Risk:Reward ratio (R:R) of above 2.25.
If you have any questions or comments, please feel free to comment below.
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