WaveTrack International

Elliott Wave Financial Price Forecasting

A little bit of practice

by m.tamosauskas| April 4, 2014 | No Comments

Dear Elliott Wave Enthusiasts!

I’d like to tell you that we’ve just published a BONUS REPORT on Precious Metals into the Elliott Wave Compass report. But first, I’d like to ask you a question. How good are your eyes at recognising and identifying Elliott Wave patterns?

R.N.Elliott documented 13 specific price-patterns that form his Theory – they are composed into two groups, ‘impulse’ (action/growth/expansion/progress etc. ) and ‘corrective’ (reaction/decay/contraction/regress etc.) – they are,

IMPULSE:

Five wave ‘expanding-impulse’

Five wave ‘contracting diagonal-impulse’

Five wave ‘expanding diagonal-impulse’

CORRECTIVE:

Zig Zag – single

Zig Zag – double

Zig Zag – triple

Flat – horizontal

Flat – expanding

Flat – running

Triangle – contracting

Triangle – ascending

Triangle – descending

Triangle – expanding

You can check these out here:

https://www.wavetrack.com//tutorials/the-wave-principle.html#Thirteen-Patterns

TEST YOUR KNOWLEDGE

But when it comes to applying the Elliott Wave Principle in real-time, can you transform the chaotic ‘noise’ into one of those patterns he described? We have a good example to test you.

You’ve perhaps noticed that Gold has changed direction again since forming a high in Mid-March. Take a look at this chart in fig #1 below – this is the GDX Gold Miners ETF – what pattern do you see?

01_GDX_140404

Don’t scroll immediately lower, or you’ll see the result, test your knowledge first by selecting one of the above patterns in R.N.Elliott’s list (do you remember what they look like? – if not, refer to the website graphics in the link above). Once you have your answer, scroll down to see the result!

THE ANSWER IS BELOW

The answer is a RUNNING FLAT – see fig #2 below. The running flat is a ‘corrective’ pattern, unfolding in the opposite direction to the prevailing trend – in this case downwards. It is composed of three main price-swings and we have labelled this in intermediate degree, (A)-(B)-(C). Notice its subdivides 3-3-5, so that wave (A) unfolds into a three wave zig zag, wave (B) as another zig zag and finally wave (C) as a five wave ‘expanding-impulse’ pattern.

02_GDX_140404a

The RUNNING FLAT is distinguished from an expanding flat because wave (C) does not exceed the termination (high) of wave (A) – this means it effectively ‘truncates’ and is a sign of a weakening condition – buyers into the high are not strong enough to push prices above the more common price target level above wave (A).

Did you recognise it?

From an Elliott Wave perspective, this is a picture-perfect example of the archetypal running flat pattern, not only from the structural aspect, but also from the geometric Fibonacci-ratio aspect.

SPECIAL BONUS REPORT – Precious Metals

We have just updated this pattern into our current forecasts for precious metals and have now published the results into a special BONUS REPORT that is added to the EW-Compass subscription. The report shows how the running flat pattern fits into the larger/aggregate pattern developing from the 2011 highs for the GDX but also for the XAU Gold/Silver index, and of course for GOLD & SILVER bullion.

This report is invaluable because it describes the finalisation of declines within the up-coming ‘INFLATION-POP’ scenario. We have posted a lot of analysis on this subject on our website at wavetrack.com – just type in INFLATION POP into the text search function and take a look for yourself. I can’t stress how important it is to track the precious metals at the moment.

The latest PRECIOUS METALS BONUS report is refers to previous reports  – you can compare these forecasts and see how well they have performed – just go the ‘SPECIALS TAB’ in the EW-COMPASS software to download them FREE, as part of your subscription.

And one last thing – WaveTrack International’s 2014 price-forecasts can also be viewed in two hour-long videos, PART I and PART II. These Elliott Wave forecasts remain valid, and are vitally important especially when we follow the path that precious metals are unfolding into during the next several years.

So don’t delay – take a look at the latest short-term price forecasts, but also how the medium and long-term forecasts are corroborating something spectacular is developing. And don’t forget to send us your feedback! Just use the Help-Desk located in the main-page of wavetrack.com.

All the very best to you!

Peter Goodburn

Chief Elliott Wave Analyst

WaveTrack International

Category: GDX, Gold

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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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