Hi Trader,
After our latest huge success I want to update the current XAUUSD Chart as I start to recognize a clear price action.
The fact that Gold didn't make a new high trapped a lot of Elliot Wave traders since most were expecting another Leg up to complete the inner Cycle of Wave 5 which would then conclude to a bearish ABC correction of the overall cycle.
What happened to Gold is a so called ''failed fifth'' where the fifth wave of a cycle cannot exceed above wave 3. This a uncommon price action and is a clear sign of weakness that shows us that bears are slowly getting into control.
So what's next?[/I]
Since I always look into inner counts of each wave I have found an invalidation point according the bullish scenario, where wave 5 would make a new high before it starts retracing. Therefore I assume that we move currently in Wave a. Wave a is a correctional wave that occurs after a completed Cycle of 5 waves and is also made out of 5 waves. In this case I expect that we are currently building up wave 4 which usually builds up the form of a triangle before wave 5 starts the next impulsive move - in this case downwards. We can expect that wave a lands between 38% - 50% of the major cycle. This is where I will place my buying orders to catch up the move of wave b, that should retrace at least 50% of the movement of wave a. Exactly here is the point, where I will close my orders to look for a good short swing and catch the whole move of wave c.
That said: I wish ya'll the best and a profitable week.
This is no financial advice,
RL from RT_Trading_
After our latest huge success I want to update the current XAUUSD Chart as I start to recognize a clear price action.
The fact that Gold didn't make a new high trapped a lot of Elliot Wave traders since most were expecting another Leg up to complete the inner Cycle of Wave 5 which would then conclude to a bearish ABC correction of the overall cycle.
What happened to Gold is a so called ''failed fifth'' where the fifth wave of a cycle cannot exceed above wave 3. This a uncommon price action and is a clear sign of weakness that shows us that bears are slowly getting into control.
So what's next?[/I]
Since I always look into inner counts of each wave I have found an invalidation point according the bullish scenario, where wave 5 would make a new high before it starts retracing. Therefore I assume that we move currently in Wave a. Wave a is a correctional wave that occurs after a completed Cycle of 5 waves and is also made out of 5 waves. In this case I expect that we are currently building up wave 4 which usually builds up the form of a triangle before wave 5 starts the next impulsive move - in this case downwards. We can expect that wave a lands between 38% - 50% of the major cycle. This is where I will place my buying orders to catch up the move of wave b, that should retrace at least 50% of the movement of wave a. Exactly here is the point, where I will close my orders to look for a good short swing and catch the whole move of wave c.
That said: I wish ya'll the best and a profitable week.
This is no financial advice,
RL from RT_Trading_
Trade closed: target reached
First target hit. Looking for buys now.Trade active
We have successfully entered our Short position - Gold is already reacting at our highlighted area.Trade closed: target reached
TP1 Hit.Note
I will upload a new Idea based on the current PA. If you have opened longs at my TP1 I recommend you to hold those.This is no financial advice, you decide over your trading. I just give recommendations based on my expertise.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.