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Originally Posted by Summerset
2- All current consolidatory corrective action has so far held within the lower median of the fork thrown by the current higher degree wave. (This Chart is not shown here, but will be posted shortly).
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On the attached chart, we are in wave-4 of a primary (V) ending diagonal.
Note that the violation of the fork for each primary wave, marks termination of that wave, and beginning of the new one.
This is clearly maked in wave-IV. In current wave -V, we are still holding within the lower median of that wave.
This does not however negate throw overs of 23% below the fork V lower median.
A lateral Fork in Gold is shown for wave IV. Price is currently at the median of this fork. It is essential for price to support here, if Wave -V is to be considered of motive character, and not just undoing the corrective work of wave IV.
Within the current structure of wave V. W-1 starting point conincides exactly with an upward momentum penetration of the CCi through the ADX.
W-1 is also equal to W-3 ~ 1150 pips. However, I can not believe that W-5 within an ending diagonal will extend to 1.618 of W1 & W3. But being the end of the ending diagonal believe it will unfold to .618 of W-1 = 710 points.
This give a target of 4050 from current levels.
W-2 was a serries of flats, and by habbit of alteration, W-4 the current wave will amount to a complex zigzag. Its end will confirm once the CCi penetrates the ADX upwards again.
On the Chart, note that start of impulse waves always show as ADX spikes to high extremes. Their origin is always an ADX extreme low. Lenghty consolidations and churns are frequent as shown in Wave IV correction, & W-2 correction. That why we can not jump the gun until a clear CCi X ADX cross. This is also why hedging will be benificial now, as we are in an ADX churn until W-4 ends.
There are 2 ADX spikes for W-3. This is normal for an extended wave. And showed during the extentions within Wave-I from 0.8665 bottoms.
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