Hah! So you really think trading gold can be made easy? It certainly does look so with hind sight, as the following charts reveal. But honestly, if you learn some Elliott Wave analysis, you could have captured at least some of this move. Of course, just like trading any other instrument, you would have placed protective stops while trading Gold. For example, you might have thought that Gold would find resistance at the 61.8% retracement level, but it actually went to the 70.7%. If you had sold at the 61.8% level, you should have chosen your stop carefully, just above the next key resistance at 70.7%. Alternately, you would have joined in as the metal started moving down, with a stop above the high, Trading is more than just analysis. It concerns active money management. What WaveTimes does is to show you how to use Elliott Wave principle in order to bring a method to your trading activity.
So let us start by looking at how you could have captured many of the moves down. Remember, Wave Times had mentioned the target of 1480 a few months prior to the collapse, so you know which way it was headed already.
P.S. I will try and post more charts on trading gold in Forbes today.Click here if you wish to follow my Forbes comments.
Thanks for your update on Gold here & at Forbes web. I have gone through both post.
One thing or rather two thing I would like to know, how one can judge today’s current sudden spurt came after 12.30 NY Time and how to over come such move. Any technical reasons seen for such spurt..??!! It was quoting $1650 & in no time – half hour touched at current writing $1700+, so how easy to determine the wind blowing against the normal direction..!!??
Hi Piyush, there is no way of anticipating a market changing news. Yesterday the fed announced that US interest rates will be at zero till end 2014.this is why you need to have stops. My stop was at 1665 as seen in the last chart
Thanks for your replay, you do have mentioned for clear stop of 1665, there is no doubt for that, but my query is how to learn such sudden change of trend and does this move changes the preferred counts we had plotted and how can someone take smell of some warning for such News based moves..??!!
Hi Piyoush, unfortunately there is no way of anticipating future news. This is one of teh reasons why we have a stop. EWP gives us a method to trade. It doesn’t guarantee the future!
Can you please start always with a blank chart. So that we can check our count in proper way or not.
thxx sir ….. great post ……………………………………….ur great sir
Thanks for sharing those information they are quite usefull infact. I was in that rallies yesterday and captured good profit but my concern now is how to determind the next Supply zone for gold to go short? Regards.
Hello Ramki sir,
Brilliant post sir, I have applied this study to MCX- Copper daily basis charts and found that copper found resistance at 443 ie 70.7% and crashed down to Rs 330 then after. excellent …………………………..
With the current surge in gold prices, does your previous outlook for gold hitting 1310 level looks a distant possibility now?
Or is it still possible in 2012?
Thanks in advance…
Hi Vaibhav, there is one window I’d like to watch in gold, 1807. If we go well past that, then the correction to 1425 (revised up from 1310) will be delayed till after we retest the highs. Guess this more than answers your question