Elliott wave Analysis: Silver Can Be At The End Of A Big Triangle Pattern 

silver daily

Gregor - Author BIO photo

Silver moved lower this week but found a support at 14.70 where trendline of previous two swing lows caused a bounce. Actually, this trendline can be part of a wedge, maybe even an ending diagonal for wave C of D so a new higher recovery can be around the corner. Let us keep in mind that triangle on a daily is till incomplete, so ideally current rise will extend above 15.06 and will represent part of a wave E.

Silver, 4h

silver 4

On the daily charts of silver, we can see that metal came down in the last few weeks but so far only with three legs so it can be wave D of an ongoing triangle pattern in a higher degree wave B). If that’s the case then market will see another three wave structure for E before real weakness may step in.

Silver, Daily

silver daily

A Triangle is a common 5-wave pattern labelled 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.

Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.

Example of an Elliott wave triangle:

triangle example


Disclosure: Please be informed that information we provide is NOT  trading recommendation or investment advice. All of our work is for educational purposes only.



By Gregor Horvat

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