Lovely drop as projected……. but broke validation criteria!
Red lines mean red pivots!!!!
So one of my trading rules say if the unexpected happens – if the position is against you sell half, re-analyse then adjust the rest of the position!
As you are probably aware by now – I believe an open mind leads to better understanding and the blog is set out so that improvements can be made. If we do not learn from our mistakes we are doomed to repeat them!
So here is the re-analysis!
When I updated the charts I still had some old coloured pivots which I have not changed – so note differences in colours in chart above and below! Either way if I would have used my rules I should have picked up the above error!!
The reason for having multiple chart scales is somewhat simple and Esignal have not sorted it – I suppose I just do things so differently they have never come across it before!
They fix point to pixels instead of price and time where Chart that you use a scale less than 4 hours it fixes in one scale and over 4 hours in another! So I need 2 charts one for looking at yearly/quarterly/monthly/weekly/daily and 4 hour. Then in a second chart hourly/15 minute/4 minute/2 minute and 1 minute! So there you have it 11 fractal wave scales!
So what does this mean?
Unfortunately though we do not have a confirmation signal for a while, but we will have invalid signal relatively quickly to exit if you are long!
Another point to make is the brainwashing of Elliot Wave. This is a classic reactionary or panic bottom. Typically from this you get a great wave 1 back up! You can see the oversold condition with the huge gap to the green fork. Prices have 2 choices – zoom back up or work across in time!
IF PRICES BREAK DOWN THEN THE PREVIOUS ANALYSIS RULE BREAK RATHER THAN THIS ONE MAY APPLY. READ THE OLD GOLD REPORT FOR THAT SCENARIO BECAUSE RULE BREAKS SHOULD CORRECT WITHIN THE NEXT BIGGER WAVE SCALE!