Elliott Wave 5.0 "Reboot"

Monday, February 1, 2016

Gold Intraday Elliott Wave Count Review: Correction Soon?



Right now gold is sitting in a small double top, which can still produce an upside breakout in a short term move.  A correction is due but I have very little wiggling room as the $1090 would be the make or break price level, if another 5th wave is going to happen. $1090 would just a bit above my bottom trend line. 

The entire gold move has been pretty shaky as I am forcing an impulse wave count.  The problem is that any of these suspicious bullish moves can be part of a much bigger bearish rally and for traders, they will want to play it up every chance they get. 

Since the start of 2016, I will always draw my trend lines with two or three parallel lines first, and will make it clear if I show a wedge or a triangle. Making the trend lines parallel provides more stable reference points, especially when 3 wave patterns are involved. 

I will not force, throw-over or throw-under trend lines, because they are very subject and for any Elliott Wave analysis makes them very misleading.