Elliott Wave: Silver Trapped On Potential Triangle Pattern
Gregor Horvat | Jan 19, 2018 10:42AM ET
Good day traders!
Silver is trading in a three-wave bearish correction, labeled as blue wave b. We see first sub-wave a) as completed, and current slow and choppy price activity as sub-wave b) that looks more and more like a Elliott wave triangle pattern. As such five legs must unfold within the contracting range as in an a-b-c-d-e manner for a completed pattern. Once this correction unfolds, a new sharp drop lower into sub-wave c may follow.
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.
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