GOLD WEEKLY,MONTHLY ANALYSIS |7 OCT 2024
This is the third time,this pattern has been drawn on chart,as description to steps are as follows,go see previous months chart.
Elliott Wave Theory :
The 1-2-3-4-5 Wave Pattern:
The 1-2-3-4-5 wave structure is the basic impulse wave pattern within the Elliott Wave Theory. It consists of five waves that move in the direction of the overall trend, whether it's bullish or bearish.
Breakdown of the Waves:
Wave 1:
This wave is the initial move in the direction of the new trend.
It often catches the market off guard, and at this stage, most investors don't realize a trend change has begun.
Wave 2:
This wave moves in the opposite direction of Wave 1 and retraces some or all of the gains made during Wave 1 It usually doesn't retrace the entire move of Wave 1 (often up to 61.8% as per Fibonacci retracement levels).
The sentiment is still bearish (in a bullish trend) or bullish (in a bearish trend).
Wave 3:
This is usually the strongest and longest wave in a trend. In a bull market, this is when prices rise the most rapidly.
This wave is typically driven by widespread market participation, as traders recognize the trend.Wave 3 usually extends beyond the high of Wave 1 and represents a robust movement in the direction of the main trend.
Wave 4:
A corrective wave that goes against the primary trend, but it doesn't move as deep as Wave 2.
This is often a shallow pullback, as traders remain confident in the continuation of the trend. It's generally short and often moves sideways.
Wave 5:
The final wave in the impulse sequence. This is a final push in the direction of the primary trend.
While Wave 5 may still show strong price movement, it's often weaker than Wave 3 in terms of momentum.
Many technical indicators, such as volume or momentum oscillators, may start showing divergence, signaling that the trend is near exhaustion.
After Wave 5: Corrective Waves (A-B-C)
Once the 1-2-3-4-5 sequence is complete, the market typically enters a corrective phase known as the A-B-C correction, where prices retrace some of the gains or losses from the impulse wave.
Visualization of the Impulse Wave:
markdown
5
/ \
3 5
/ \
1 \
/ 5
1/ \
5
The 1-2-3-4-5 pattern describes the general direction of a market move, and traders look for it to time entry and exit points in the market.
Elliott Wave Theory :
The 1-2-3-4-5 Wave Pattern:
The 1-2-3-4-5 wave structure is the basic impulse wave pattern within the Elliott Wave Theory. It consists of five waves that move in the direction of the overall trend, whether it's bullish or bearish.
Breakdown of the Waves:
Wave 1:
This wave is the initial move in the direction of the new trend.
It often catches the market off guard, and at this stage, most investors don't realize a trend change has begun.
Wave 2:
This wave moves in the opposite direction of Wave 1 and retraces some or all of the gains made during Wave 1 It usually doesn't retrace the entire move of Wave 1 (often up to 61.8% as per Fibonacci retracement levels).
The sentiment is still bearish (in a bullish trend) or bullish (in a bearish trend).
Wave 3:
This is usually the strongest and longest wave in a trend. In a bull market, this is when prices rise the most rapidly.
This wave is typically driven by widespread market participation, as traders recognize the trend.Wave 3 usually extends beyond the high of Wave 1 and represents a robust movement in the direction of the main trend.
Wave 4:
A corrective wave that goes against the primary trend, but it doesn't move as deep as Wave 2.
This is often a shallow pullback, as traders remain confident in the continuation of the trend. It's generally short and often moves sideways.
Wave 5:
The final wave in the impulse sequence. This is a final push in the direction of the primary trend.
While Wave 5 may still show strong price movement, it's often weaker than Wave 3 in terms of momentum.
Many technical indicators, such as volume or momentum oscillators, may start showing divergence, signaling that the trend is near exhaustion.
After Wave 5: Corrective Waves (A-B-C)
Once the 1-2-3-4-5 sequence is complete, the market typically enters a corrective phase known as the A-B-C correction, where prices retrace some of the gains or losses from the impulse wave.
Visualization of the Impulse Wave:
markdown
5
/ \
3 5
/ \
1 \
/ 5
1/ \
5
The 1-2-3-4-5 pattern describes the general direction of a market move, and traders look for it to time entry and exit points in the market.
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