[RT] Re: Irregular Corrective Patterns (iii), RealTraders Email List Archive

Greetings Traders:

Metals markets tend to show unique characteristics of having rather violent pullbacks and retracements. Although once they are on a trending / impulsive mode; they almost never give you a second chance to capitalize the impulsive legs of the move. That said, IMHO, it is important to position oneself (be it on an intraday basis or positioning for medium to long-term movements) correctly when the market is still making attempts to resolve itself during corrective mode. As I am a great believer in wave counts and specifically in pattern recognitions; it is through pattern recognitions that we will be able to ‘define’ the characters of a particular market. Please refer to the attached gifs. Being a metal market, by nature, it just enjoys its usual behavior in squeezing / taking out the longs and shorts before the real move materialize. The attached gifs are from the Gold market; this corrective pattern is self explanatory on the gifs. I use the label 1-2-3-4 to let the reader easily identify the ‘intent’ of this pattern. From an Elliott Wave perspective, this is the irregular corrective pattern that can easily replace the 1-2-3-4 into a-b-c. The Comex Gold 100 oz. has a very high tendency to perform this corrective pattern in all timeframes. Hope this helps. Take care.

Have a good one

Jeff Harteam