BUILDING YOUR ANALYSIS WITH CONFLUENCES

When we consider wave principles along with the basic fundamentals of the market, this will take your trading game to a whole new level.

In the analysis of Gold we have a number of thing happening.

1.) Price is sitting below a market resistance zone this is an indicator for price to fall.

2.) Price is getting higher but the volume is not reflecting this momentum. (The sentiment of the market is indicating that the number of buyers are not reflecting with the market price.)

3. Elliott Wave principles indicates that after a 5 wave impulse the market must correct in a 3wave sequence. A common terminus point for wave 2 in a 5 wave sequence is the 78.6% zone.

We are seeing 3 clear indication that we should be expecting a decline within the market.

The more confluences you can add to your analysis the higher your probability of having a profitable trade.