Gold

Yep..
It's good for an early entry.
But the main one comes on the daily chart.
And above the top of the hammer can be classed as a 123 low breakout.
That will be similar to the 4 hourly level.

Remo

Can we 123 low this on the 4 hourly?

clip2net.com/s/2GHhC



Cheers RMc

gold played out nicely today

im long on gold with stop below hammer.
Ive gone long due to the price moving halfway down the hammer and its also where the trend line is.
Good risk to reward doing it this way.



dyor

Hi Nev,

Interesting possibility. On that count you've got wave 2 retracing to the 78.6% Fib of wave 1 and wave 4 retracing slightly beyond the 61.8% Fib of the wave 3 which goes against the guideline of alternation.

I know it's only a guideline, not a rule, of EWT but it seems a little harsh to me. Plus the 1795 recent high came with a bearish RSI divergence on the daily which, in my experience, tends to suggest a wave 5 top. The following 61.8% retrace would then make sense as a larger degree wave 2 down.

All IMHO and could be wrong!

Jackozy wrote: I'm really surprised that nobody followed up on this after the close on Friday night. A whopping great hammer right at multiple supports with possible bullish RSI and MACD divergences forming:

dl.dropbox.com/u/20815047/Golddaily06_01_13.gif

If this does follow through then a bounce off a 61.8% Fib is strongly suggestive of a wave 3 to come. Resistances at 1695, 1723, 1754, 1767 (trendline) and 1796 initially.

I was thinking more along the lines of this.