Limiting contracting triangle occur in place of Wave-4 and
Wave-B.
Post triangular action of limiting contracting triangle
constricted within very specific parameters, Hence the name is limiting.
The termination of Wave-e in this patterns should occur from
20-40% before apex point if triangle.
This is the horizontal variation of Limiting Contracting
Triangle.
Essential
Construction Rule-
1.
The Trendlines of triangle must travel in
opposite direction.
2.
The apex point the triangle must fall within a
range of 61.8% of the longest segment of the triangle centered in middle of the
longest segment.
3.
Wave-D must be smaller than Wave-C.
4.
Wave-E must be smaller than Wave-D.
Above all essential construction rule are
satisfied by gold chart, Hence gold is forming limiting contracting triangle.
Fibonacci Relationship:-
Triangles are having high probability of
exhibiting multiple Fibonacci relationship than other any corrective
pattern.Contracting Triangle without Fibonacci relation should be considered
impossible.
The most common setup for alternative wave
is for wave-a ,wave-c and wave-e related
by 61.8% or 38.2% and wave-b and wave-d relate by 61.8%.
Above all Fibonacci relationship rules are
satisfied by gold chart.
Details
Of Minute Degree Waves-
Wave (a) :
1180.20 to 1433.73 = 253.53
Time Unit – 18.
Wave (b) :
1433.73 to 1182.35 =251.38
Time Unit- 37
Wave (c ):
1182.35 to 1388.54 =206.19
Time Unit-23
Wave (d):
1388.54 to 1240.48 = 148.06
Time Unit -23
Wave (e):
1240.48 to 1345.28 =104.80
Time Unit-12
Pattern Implication:-
Ø
The thrust is from 75% to 262.8% of widest leg
of triangle, after completion og triangle.
Ø
The thrust
should be terminate almost be terminate exactly into the time period
creating apex point.
Ø
The market action after the thrust should return
to breakout point and will usually exceed it. If not returned in to break out
point and market action exceeded the original trusts highest of lowest point
there must be either terminal pattern or X-wave unfolding.
Target : 1091.97
Time
Frame : 6-8 Weeks.
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