Weekly (pink): Looking at the bigger picture on XAUUSD, I am bullish for the time being. We can see the initial impulse on the left of the chart and we are currently forming the corrective structure. I have plotted estimated points at which I believe the corrective structure will play out. According to my analysis, we are in wave 2 of the correction and I believe that there is still some upside to come before the completion of wave 2.
Daily (blue): I expect the daily time frame to play out as indicated above. According to my analysis, wave 2 of the daily correction is complete and we are starting wave 3 to the upside. Wave 3 will complete at the top of the larger weekly structure marked in pink. There is a strong possibility of a reversal from that level for wave 3 on the weekly structure. I am looking for an entry to trade wave 3 on the daily (blue) structure.
H4 (green): The corrective structure, indicated in green on the H4 chart above, broke to the upside and also broke an important trend line, marked in orange. This should indicate the start of wave 3 on the daily (blue) structure. I am waiting for a confirmation structure to form in order to get an entry point for the long.
H1 (red): I am watching the formation of the structure indicated in red on the H1 chart above. I will use this structure for an entry for wave 3 on the daily (blue) structure.
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Linton