Elliott Wave theory is one of the most accepted and widely used forms of technical analysis. It describes the natural rhythm of crowd psychology in the market, which manifests itself in waves. The essence of Elliott waves is that prices alternate between impulsive phases that establish the trend and corrective phases that retrace the trend. In their most basic and straightforward form, impulses contain 5 lower degree waves and corrections contain 3 lower degree waves.
Elliott Wave is fractal and the underlying pattern remains constant. The 5 + 3 waves define a complete cycle. They can form different patterns such as ending diagonals, expanded flats, zigzag corrections and triangles. Fifteen different degrees of waves can be identified with each of the 5 smart drawing tools, allowing users to visually identify different degrees of waves on a chart. The key to trading Elliott waves successfully is counting them correctly for which there are rules and guidelines.
XRP went higher than expected in my previous plot (click).
But the basic "12345" impulse then "ABC" correction applies.
We currently in a "decision zone" between 2 different paths.
Top chart shows how our ABC "might" be completed already.
The wave being from .618 retracement to -.618 extension.
Break below the -.618 ($0.0297) makes this option Less...
Much capital was waiting for FOMC rate decision to be deployed.
Markets seem to treating the .25% reduction as a "Hawkish Cut".
Thus Gold and non-interest bearing assets dropped on the news.
Gold was already postured to correct and now it seems inevitable.
Plotted is a possible "ABC", which had good "EW Structure" thus far.
How deep this correction reaches will...
Market Commentary:
READ THE MARKET COMMENTARY IN THE CHART CAREFULLY...AND TRY TO LEARN THE ELLIOT WAVES...OTHERWISE ITS TOUGH TO UNDERSTAND MY ANALYSIS
YOU CAN COMMENT ONLY FOR DOUBTS IN LEARNING EW AND NOT FOR ENTER OR EXIT IN THE TRADE OR ASKING ME OR SUGGESTING ON WHAT U TAKEN, ACCORDING TO YOUR ANALYSIS.
All information given inside the chart and i shared...
Going Down?
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Trading carries a high level of risk to your capital and may result in losses that exceed your initial deposit.
Supplied information is not advice.
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Currently, IMHO the ideal setup would be a small c-wave down into the ideal wave-4 target zone followed by a rally to SPX3045-3075 which would then provide for a nice setup for a larger decline into late next month to adhere to the pre-election year seasonal average pattern this market has been tracking well all year so far (see here).
A break below SPX2940 from...
My estimations of the top of Wave 5 yesterday proved accurate, but my estimation of where the correction wave would end, at 0.30164 ended up being not conservative enough as the price fell to the 0.618 retracement point at 0.28617.
Part of this move lower was due to the significant spike down by Bitcoin which appears to have tanked the whole market.
Technically...
It looks like the primary W,X,Y zig-zag wave ended the longer-term bearish cycle correction starting on February 2018.
Minor 5 of Primary Y wave ended with a diagonal triangle at 1.09275 level, which is the 1.618% FE of the 1.14-1.12-1.128 triangulation.
Since prices broke outside the top of the triangle pattern and remained trading with a bullish rather than...
Market Commentary:
READ THE MARKET COMMENTARY IN THE CHART CAREFULLY...AND TRY TO LEARN THE ELLIOT WAVES...OTHERWISE ITS TOUGH TO UNDERSTAND MY ANALYSIS
YOU CAN COMMENT ONLY FOR DOUBTS IN LEARNING EW AND NOT FOR ENTER OR EXIT IN THE TRADE OR ASKING ME OR SUGGESTING ON WHAT U TAKEN, ACCORDING TO YOUR ANALYSIS.
All information given inside the chart and i shared...
Medium term buying opportunities now exist for EURGBP. Initial targets set for 0.91xx as we have the potential to complete an ABC correction to shift lower. Follow us for more updates on Twitter! @portier_au
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