Elliott Wave 5.0 "Reboot"

Tuesday, February 2, 2016

Gold Daily Chart Elliott Wave Count Review With A Degree Template!

This is going to be a very important review of gold because I am also releasing for the first time and only time my degree template, that I follow. I have been using this personalized Degree Stack and I have added three more lines to the bottom of the chart.  These are Atom, Proton and Quark degree levels and as you have guessed they represent extremely small waves.  

In the this electronic age and high speed trading, I think there are many more degree subdivisions that we can normally see. 
I visualize the EWP sequence as just one big wave count and all of it counted as a 1-2 punch type count. In other words, it is all based on the three count being the longest and not the 5th wave as being the longest. 

At the top is the largest degree which started at wave zero somewhere in the past.  I like to think wave zero as the early start of farming. Larger scale farming and the exchange of goods with some type of money started about 10,000 years ago after the ice age started to unwind, and it was the only way for towns to grow into cities and nations. 

It is also important to know and that is, that all corrections (letters) are always one degree lower than the corresponding number.  For an example a Grand Supercycle degree (GSC) can only be corrected with Supercycle (SC) degree letters.

It's like thinking inside the box all the time, except we are dealing with 18 boxes. Without any template the Elliott Wave Principle (EWP) will not make any sense. You have heard the expression of "thinking outside the box" but with the EWP, we have many boxes to choose from.  

I make every effort to find and follow the 5 wave sequence in Cycle degree as without it we will never find SC or GSC degree wave positions. My biggest corrective numbers can only be in Primary degree, so if I suddenly without telling you, jump one degree higher then I have screwed up and I must adjust before going forward. 

What makes it worse is that in commodities the EWP falls apart or seems to fall apart  as it can run counter to the stock market.  Trying to figure out where the gold is in this sequence is the challenge at hand.   We have had many fake rallies in the gold bear market and we want to be on the look out for it to happen again. 

I have labelled many of the degree levels that are present and my largest that you see is in Minor degree.  My two trend lines will always be parallel  and many times, always at the same angle. 
My top line would have a target of $1190-$1200 where strong resistance can take over. Unless we have a much stronger rally than anticipated, gold it will cut through my top line like a hot knife through butter. 

I am showing you the wave count of an expanded pattern so we have to wait if this weak or diagonal looking wave will push to the $1190 price level, as that would be very close to my maximum. 

When the employment numbers come out on the first Friday of the month this can cause some dramatic moves in both directions,  so hang onto your hat as those days will always prove interesting. 

Since June 2013 the gold market has changed the pattern and direction a bit and this pattern is diagonal looking.  This is the one good sign that at some point in the future gold should retrace all of 2014 highs.