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Elliott Wave Financial Price Forecasting


by WaveTrack International| May 26, 2017 | No Comments

GDXJ Junior Gold Miners - 120 mins.

GDXJ Junior Gold Miners – 120 mins.


Towards the end of last February, the 27th to be exact, we posted an update of the GDXJ-Junior Gold Miners ETF showing how it had just ended a strong 5-wave impulse upswing at $43.01 from December’s low. This was providing confirmation of upside continuity in the future. In fact, this initial five wave impulse was simply the beginning of a much larger, multi-year uptrend – a 1st wave.

But before that can continue, in compliance with Universal Law, action must be followed by reaction. In the GDXJ’s case, a counter-trend decline must begin to unfold. R.N. Elliott’s guideline is that a correction commonly returns to the area of ‘fourth wave preceding degree’ which is around the $36.08 area – see chart. Whilst corrections can end into this minimum area, they can also extend beyond, or lower. This all depends on the depth of the preceding fourth wave in relation to the fifth and the labelling of the preceding impulse.

In this specific case, the GDXJ was beginning a correction as a 2nd wave. Yet, 2nd waves are notorious for unfolding far deeper than simply levels at fourth wave preceding degree. Anticipating such declines are really dependent on how the initial stage of the correction unfolds. If declining into a five wave pattern as it did to $32.66, then we already know that another deeper part of this correction is taking place, eventually taking the form of a 5-3-5 zig zag.

Why Fib-Price-Ratios are the key to forecast termination levels for Zig Zag Patterns

This is where fib-price-ratios are crucial in measuring the termination level of the zig zag. There are various ways to accomplish this but one of the most common ratios is well-known – where waves ‘a’ and ‘c’ measure to quality, or by a fib. 100% correlative ratio. As you can see from the chart, this was zig zag perfection because this ratio projected a terminal low to $29.29+/- with the actual low coming-in at $29.33!

The $29.33 low as this 2nd wave was also testing the fib. 85.4% retracement of its 1st wave predecessor [100-14.58 = 85.4]. When pattern meets fib-price-ratios and prices respond by trading higher afterwards, it confirms a ‘reversal-signature’ or a trend reversal. And so in terms of probability, this set-up is about as good as it gets – risk-reward is excellent basis negation below 29.33 – the prevailing, dominant uptrend is expected to resume higher now.

Learn how to take advantage of WaveTrack’s Fibonacci-Price-Ratios!

Watch WaveTrack’s Fib-Price-Ratio videos on youtube to see how these measurements can be applied. These videos are gems of know-how for those who have eyes to see! WaveTrack’s first Elliott Wave Academy video

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About WTI

WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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