Elliott Wave analysis benefits a short term trader in XAU/USD

Below is an example of how I helped a short term trader in cash GOLD. Elliott Waves works just as well in the short term as in the medium to long term. It all depends on which cycle you are trading.

The following is one of the charts that I had sent my client on 30 May 2017. You can see that this was a hourly chart, captured at 4 pm when the price was at 1262.25. This client was short Gold at 1270 and wanted my Elliott Wave analysis to help navigate next steps.



Here is what happened to Gold (XAU/USD) after that.

You may think that is all well, but Gold rallied sharply to 1295 after that! Well, the analysis did actually discuss that move. But I will publish that at a later date. Perhaps you might be interested in Comex Gold? The next image is one of the charts from another consulting engagement for Comex Gold. This was sent out on 5 June 2017 when Gold was trading at 1279.

And as you probably know, Gold went exactly to 1295 and has come off to 1264.

A lot could be done with information such as this. For example, you could have sold aggressively at 1295 with a close by stop, or you could have covered your shorts at 1260 and even tried a long. With a proper strategy, you will have an edge. And that is what I called smart trading. You get that advantage with WaveTimes.

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  1. Excellent sir, XAU-USD reached exactly 1296 around(61.8% of 0-iii as you predicted) and corrected approx 70.7% (exactly 1241) from where its going up.Many times I am surprised when EWP is calculated with Fib ratios(as revealed in your book) Its now around 1256 Now, should we go for long after at least 50% correction of ensuing wave?

    1. Kaushik, Wave counts change as the markets move. EWP not a black box that throws out answers. I don’t offer trading advice on this blog. There is an Exclusive club for that!

  2. Sir, I have read you boof FWTFF more than 10 times and every time I am learning something new and it is helping me in my trading. Kindly clear my one doubt.

    As discussed in the book, after five impulse wave there is ABC Correction & ABC Correction is in the form of Zig-Zag or Flate.
    If it is Zig-Zag then it will be like 5-3-5 (ABC) and correction might close.
    But if it is a new downside impulse wave started as 12345 then same waves be like 5-3-5-3-5

    So how we come to know whether this Zig Zag is ABC Correction or Downside new Impulse wave.
    Please do need full.

    1. Bharat, To determine that you will go to one higher degree and see if the 5-3-5-3-5 down move is coming after a 5-3-5-3-5 UPMOVE. If it is, then these latest 5 wave downmove will most probably be the first leg of a zigzag.

    1. Bharat, Most of my successful trades have been based on the daily chart, and members of my exclusive club know this as a fact.

  3. hello sir,

    In book FWFF – Chapter Simple correction Flat- ABC is as a 3-3-5 pattern
    Wave A made up of Just three waves abc . so here abc is also as 3-3-5 0r 3-3-3 ?

    1. Bharat, I don’t see any wave ‘a’ in a correction in my labels. Dont confuse wave ‘a’ in a diagonal with a wave ‘a’ in a flat

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