Wednesday, 26 November 2014

Limiting Contracting Triangle Can Leads To Targets 1091.97 And More.

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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