Hello everyone here yet again to discuss a another topping.
Hello everyone here yet again to discuss a another topping. I may have overlooked this one but the pieces of the puzzle are coming together nicely. Based on the charts I have posted before gold does look ready for an amazing move up higher but may not be ready for the all out-world is falling apart prices. This is just an idea as of right now and doesn’t mean the value of the dollar and gold cannot rise together. Here is some educational info :
The horizontal triangle is a pattern that consists of five sub-waves that form a 3–3–3–3–3 structure, labeled as A-B-C-D-E. Unlike the motive wave, which also has five waves, this pattern reflects a balance of forces and travels in a sideways pattern. The sub-waves are corrective and form patterns of threes.
The horizontal triangle can either be expanding, where each following sub-wave gets bigger in amplitude, or contracting, forming a wedge. The triangles may also be categorized as symmetrical, descending or ascending, depending on whether they seem to be pointing sideways (as in the above example), up with a flat top and rising bottoms (ascending) or down with descending tops and a flat bottom.
The sub-waves may be composed of complex combinations, not just of zigzags (shown) or flats. Although it may look easy in theory to spot a triangle, it may take a little practice to become familiar with them in the market.
A triangle may extend by having its fifth wave also be a triangle of lesser degree. Instead of Wave E being a three-wave structure, it will be another horizontal triangle. This just demonstrates the level of complexity that Elliott Wave Theory can reach.
One thing to remember about horizontal triangles is that they always appear in the position prior to the final move of the pattern, or as the final pattern in a combination (described below). This means that they will appear as Wave 4 in an impulse wave or as Wave B in a zigzag. This one fact can help alert an analyst to a change in trend.
The information above in BOLD and Italic is the main part of what I am talking about. This move in gold and the Japanese Yen are lined up for this wave B move.
Lets look at the charts:
When looking at the Japanese Yen (USDJPY) chart we can see that during the Financial Crisis of 2007–2008 the yellow line went down (Yen gained strength against the US Dollar) due to Yen being considered a safe haven. The charts are saying some potential turmoil is inbound and we should be open to ideas. We are in the backside of a storm.
Also When looking at the chart with three triangles at once it tells a story. The blue one is USDJPY, the orange is GOLD and the yellow is the pure YEN currency.
Lets problem solve this puzzle:
*The yellow tells us something is lurking in the air and the educational pattern as above tells us. a move upwards is underway. (This asset is considered a safe haven in scary times.)
*The orange is gold and has been considered a safe-haven for thousands of years. The price action of this one has already broken out of triangle pattern with strength. (This asset is considered a safe haven in scary times.)
*The blue is the Japanese Yen pair which also has a triangle pattern and confirms that there will be weakness in the dollar and and confirms the strength in the YEN.Both of these now fully confirm the breakout in GOLD. With all of this being said Dollar will get weaker and safe havens will strengthen = turmoil??? Or just a weaker dollar???
Turmoil in the markets or Just a weaker dollar are the two options. Well i guess we will wait and let the market decide.
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Published at Sun, 30 Jun 2019 20:06:53 +0000
