Elliott Wave Courses | by ForexCycle.com | Thursday, 16 January 2014 01:02 UTC
By Elliott Wave International
The best thing about Elliott wave patterns? Easy: They repeat.
They repeat on all timeframes, across dozens of markets, all over the world. Once you know what to look for, you see the familiar 5s and 3s repeat in every chart.
You know what that means? That means that the same trade set-ups the markets gave is 2013 are bound to be repeated in 2014.
We have hand-picked for you seven of the best Elliott wave trade set-ups of 2013. Here is one of seven.
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On April 15 gold prices plummeted 10% in their biggest single-day decline in three decades.
April 9 Metals Specialty Service's daily analysis highlighted a "key shelf of support" at 1540-1520. Why? Because it defined the trading range throughout gold's sideways action the prior two years:"This is very important action. So far, the key shelf of support has held. The quality of the rally that occurs here will tell us whether a major low was registered [last week at 1539], or those shelves will again be tested and perhaps broken. The bearish count would have a large decline unfolding with new lows ... below 1500 a valid possibility."
On April 12 gold prices violated the key shelf of support. The April 12 Metals Specialty Service's daily video update confirmed that the downside floodgates had now been opened:
"When you're in this type of extreme environment we're in after you've broken this type of support that's been in effect for a year and a half, that's where you've got to say you could drop another $100-$150 in a matter of days. ...
"Take a step back. We've broken support. We're well below it. It's a key shelf. Unless you rally and close back above this 1520-1535 zone, you've got to be bearish looking for lower prices
"How low? You could go way down ... at least looking for 1448, 1398, perhaps even lower than that."
On April 15, gold followed its near-term bearish Elliott wave script. Prices plummeted below the $1448, then $1398, then "even lower" to 1321 on April 16.
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