Tag Archives: lara elliott wave gold

The Trend Is Your Friend

The flip side of the title to this post is “don’t trade against the trend”.

The fact that markets trend is why traders make profits. Price is not completely random. Price tends to move in trends.

Trends are often delineated by trend lines.

When price is consolidating it tends to move in whipsaws about a moving average with choppy overlapping sideways movements. Price tends to move from resistance to support and back again, but not in a straight line. Overshoots of resistance and support can also happen yet price can turn back into the consolidation zone. It is impossible to tell exactly when and where price will turn, so if trying to trade a consolidating market losses are inevitable. Mean reverting systems for trading during a consolidating market are suited for the most experienced and nimble of traders only, not at all for beginners or those with only a few years experience.

When price has been consolidating for a while, then horizontal lines can be drawn to show the upper and lower boundaries of the consolidation zone. It then becomes a waiting game. Waiting for a breakout. When price breaks above resistance or below support on a day with an increase in volume, then a breakout is indicated and the market has begun to trend again.

When price is trending it moves in a clear direction, usually finding support (an upwards trend) or resistance (a downwards trend) at a sloping trend line. The clear direction of price movement is what makes profit easier, so the trick is to identify a new trend early enough to allow for profit to be made and then to identify when it is over early enough to exit the trade with a profit. For less experienced traders, it is advised to wait for a clear trend to be evident and then to only trade in the direction of that trend. Profits should be relatively easy as long as the trend is not exhausted.

If staying with the trend is the easiest way to make a profit, then it makes sense to avoid trading when the market is not trending.

It is often the trades that a trader does NOT take which makes the difference between profit and loss. Cut losses by avoiding consolidating markets.

If there is only one lesson that new traders can learn which will improve trading performance, it is to only trade a clear trend in the direction of that trend.

GOLD Elliott Wave Technical Analysis – 7th December, 2015

Upwards movement was expected but did not happen.

Price remains above the invalidation point on the hourly chart.

Continue reading GOLD Elliott Wave Technical Analysis – 7th December, 2015

GOLD Elliott Wave Technical Analysis – 17th November, 2015

Yesterday’s hourly chart expected some more downwards movement short term and warned a new low may be seen. This is what happened.

Continue reading GOLD Elliott Wave Technical Analysis – 17th November, 2015

GOLD Elliott Wave Technical Analysis – 23rd October, 2015

Price whipsawed taking out both invalidation points and providing more confusion, not clarity.

Continue reading GOLD Elliott Wave Technical Analysis – 23rd October, 2015

GOLD Elliott Wave Technical Analysis – 14th September, 2015

The Elliott wave counts still diverge and price has still not indicated which one is correct.

Continue reading GOLD Elliott Wave Technical Analysis – 14th September, 2015

GOLD Elliott Wave Technical Analysis – 3rd September, 2015

Downwards movement is unfolding as expected for both Elliott wave counts.

Continue reading GOLD Elliott Wave Technical Analysis – 3rd September, 2015

GOLD Elliott Wave Technical Analysis – 2nd September, 2015

Downwards movement was expected for Wednesday’s session for Gold.

Today’s analysis will answer the question of whether or not price has confirmed the trend.

Continue reading GOLD Elliott Wave Technical Analysis – 2nd September, 2015

GOLD Elliott Wave Technical Analysis – 24th August, 2015

Some downwards movement was expected for the new wave count in the short term, which is what has happened. Movement was choppy and overlapping and moved lower for Monday.

Today I will expand on three different ideas for the new wave count at the weekly chart level. Also, I will rank each idea in order of probability.

Continue reading GOLD Elliott Wave Technical Analysis – 24th August, 2015

GOLD Elliott Wave Technical Analysis – 13th August, 2015

The Elliott wave count as updated in yesterday’s analysis is unfolding mostly as expected.

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GOLD Elliott Wave Technical Analysis – 4th August, 2015

The alternate Elliott wave count proved to be correct in the last 24 hours.

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GOLD Elliott Wave Technical Analysis – 27th July, 2015

Price began the session with some upwards movement, which the last Elliott wave analysis expected, but price then moved lower to complete a red candlestick.

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GOLD Elliott Wave Technical Analysis – 16th July, 2015

Downwards movement was expected, again, and this has occurred.

Supported again by technical analysis indicators, the Elliott wave count remains the same.

Continue reading GOLD Elliott Wave Technical Analysis – 16th July, 2015

GOLD Elliott Wave Technical Analysis – 7th July, 2015

Yesterday’s main Elliott wave count expected a third wave down.

Downwards movement is showing an increase in momentum, exactly as the main Elliott wave count expected.

Continue reading GOLD Elliott Wave Technical Analysis – 7th July, 2015