Gold has been making some really large moves lately. But now those swings are making things pretty clear as to what is happening and what could be happening very soon! And that "Largest Swing Of All" I am referring to may be coming in the days/weeks to come! You DEFINITELY want to be part of it!
Back about 40 days ago, I posted this chart and predicted that Gold would fall following the completion of an EED wave (5) of a larger wave 3. Here is that chart:
Here is the updated chart showing that same EED that I posted back then and what happened after I posted about Gold looking to sell off. It fell over +1000 pips from there! What I am seeing here in my wave counting is that the fall from the wave 3 top was the wave 4. This recent thrust up is impulsive in nature. So by my wave count, if that was the wave 4 completion, then this move up is the wave (1) of the new larger wave 5 up. That also means that any pullback will be the wave (2) of 5. Given all of that to be true, what does that mean? OF COURSE! It means that after a pullback, the next move will be a WAVE (3) of 5 up! And that wave (3) should be HUGE!
Here is the 8HR chart of Gold ( XAUUSD ) where you see that the drop from the end of the wave 3 top down can easily be seen as a completed 5-3-5 ABC correction. And that this recent move up was definitely impulsive in nature. Being that it is impulsive, in this scenario, it can only be a wave (1) or it must be a wave (a) of a wave (B) of a continuing wave 4. But that is my Alt wave count and scenario and if prices action calls for it, then I'll switch to it. The point to know is that in BOTH wave counts, the next move is a pullback back down.
In this 4HR chart of Gold ( XAUUSD ), I have broken down the subwaves of both that wave 4 down and also you can see that there is a clear 5-waves up in what I am labeling the wave (1) of 5. You can see how well that an extended lower TL of the former completed EED caught prices here. This occurs many, many times where TL's of former broken structures will still have a say in future price actions and something you must learn to recognize.
Anyway, I see this wave (2) retrace falling back down to test the lows of the wave (1) before turning and heading MUCH higher in a wave (3). In a perfect world, that is exactly what will happen but we need to be cautious as the FOMC is only days away and can change things very quickly and violently.
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
THINK before you comment! It takes MUCH work and time to create these posts! So before you decide to criticize me for what I post, or how I choose to post, remember that I don't just throw a chart up with a few lines on it with a few arrows showing 2 possible directions and that's it. I can do those in 5 mins. My charts take MUCH effort and I put much detail into creating them for your benefit. I hope it helps but I also hope it's appreciated!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I can know my post was helpful to you. As always, any CONSTRUCTIVE comments are welcome whether AGREE or DISAGREE.
If you desire to receive ALL my analysis on pairs I trade and cover as well as REAL-TIME trade signals, consider joining my private group and my members. You'll get REAL-TIME trade signals and analysis as the trade happens and discussions those trades live. Interested? Go to efxselect.com to subscribe and get these signals in REAL-TIME!
Website: http://www.efxselect.com to subscribe
Join my Skype chat room! It's FREE (requires registration): Skype ID: andrewefx
Sep 18th Weekly Indexes newsletter: http://bit.ly/2w2ODMH (FREE Access)
Want results like this? Join us: http://bit.ly/29x4bfM