Looks like a new WW is forming with a target in the area of 1449.6
Lot's of confluence at yesterdays low, which is near weekly support.
Still looking for final target of ~ 1413
Presently down from entry by $1.75 and currently sitting at 4 hour support at 1455
If broken, next support at 1453.
So will buy back a contract at 1449.80. Confluence area.
If you followed my posts from yesterday, you'll see that I was looking for another bearish WW to form.
WW contracts overall were down -$350 this AM (Africa time).
Follow the numbers and see that my first choice for WW 4 retraced back to a double bottom.
This made me suspicious and so I looked for another WW (orange numbers). Even though I sold at that point.
Remember yesterday how I said that the breakout from the ledge would probably retrace.
It hits its target on the 15 minute and will now retrace to SNR resistance zone and 0.618 retracements ~ 1458.90
Two orders to go short Dec Contract in ~ 1458.70
Let's see what happens
So here around noon (Africa time) I'm in the middle of consolidation on the 15 minute chart and I notice a near perfect ledge shaped WW forming.
I'm short one contract and long 1450 puts.
I add another short - takes me to the end of my margin - at 1458.90
And the ledge breaks.
I close one of the contracts at the width of the ledge ~ $2 for a quick $200, but I'm...
So I've overshoot, but I have an incredibly steep Target line.
Wave 4 retraces some which then gives me an alternative target line that's a bit more reasonable.
I wake up with a loss from the retracement over the night to point 5.
But my trend line is intact and I stay the course.
NOTE: In all of this I'm aware of Support and Resistance and trendlines. When...
So I start making profits and gold goes down to 1464 and then quickly retraces to 0.786 level.
A $8 move against me. 0.786 and 0.63 are very common retracements off of point 5.
Painful to wait through.
But this gives me a potential new WW with the former WW 5 becoming a new 1 and the 1464 a new 2
and the retracement to 1472. So now I know I'm going to have an...
Following my previous post we note a sharp reversal at what might be a new WW pt 2 developing on Nov 26th, mid-morning in the USA.
How do I know?
The reversal point is a point 4 from another WW on the 1 hour time frame. How do I know?
Study how Wave 4 forms intently and you can predict Wave 4 very accurately.
Matter of fact, if you know where point 4 will...
Wolfe Waves work!
Here is GOLD Dec contract from early last week.
Notice something very important. Wave 3 to Wave 4 is always an a-b-c wave. In this case its a measured move
Entry had very limited risk.
If point 5 overshoots, expect it to be no more than 1.27-1.5 x height of Wave 4
Look at the target, could go as low as 1410 - 20, which makes it >$150 move in...
GOLD players currently looking to cover short position and downside spikes can be seen soon in fight for better price.
Be aware of false breakouts, Even hourly close below 1456 will not clear the pictures cos of very close second support at 1454.
Long term buys are preferable on every new lows.....
DO NOT SELL LOWS !!! TRADE SMART
Picked out 2 quality zones to short on Gold. Both are in a HTF supply zone and would be a continuation of the current downtrend into HTF Demand. I've set 2 targets for both zones. The first zone will have an activation rule about halfway through the zone. If price moves in my favor after hitting the activation price, the trade will trigger as it leaves the zone....
It's looks like 1535- 1540 is a serious barrier for the Gold mini Futures (ES), Any attempt for retest this level should initiate more an more selling. it's not yet late to catch the move from very top. (ADTS)
Since gold likes to fill all the gaps before breaking out. That's what happened for the previous breakouts too. White Circle on the Charts, would be the gaps that I'm talking about.
Gap Fill Hypothesis: 1454 ---> 1449.3 ---> 1435.2 ---> 1423 ---> 1418.9 ---> 1416.7 ---> 1460; Look on 5 minutes chart. Couldn't post a 5 min chart on tradingview. Gold gapped filled...