Gold has just Put In a 5th Wave Melt-Up in a Topping Megaphone on its 30-Minute Chart
Gold has just put in a 5th-wave melt-up in a topping megaphone (red on chart above) on its 30-minute chart. It needs to form some kind of topping pattern at or across the megaphone top before reversing to the formation bottom.
Gold tends to get over-excited and make these topping patterns large and drawn-out.
The topping megaphone has formed at the top of a falling wedge. There is more than one legal way of drawing the wedge. Here is my preferred way:
Gold Falling Wedge (Blue) after Triangle (Pink) with a Bottoming Megaphone to Complete its Correction from the 2011 High
This chart shows the blue falling wedge forming after a downwards breakout from a continuation triangle. The falling wedge has the minimum-required touches on its sides, so it would usually complete with either a megaphone bottom or a continuation triangle. The megaphone bottom is shown above.
Here is the same chart with a continuation triangle:
Gold Could Also Form a Continuation Pattern Here that will Break Out Downwards
But the gold falling wedge could conceivably be drawn without the pink triangle:
Gold Alternate Falling Wedge Ending in Megaphone Bottom
I don’t much like that version because of the large wave up before the last touch on the wedge bottom. If this was the correct way of drawing the wedge, gold should have made it to the wedge top on that wave.
Here is the alternate wedge ending in a continuation triangle:
Gold Alternate Falling Wedge Ending in a Continuation Triangle
The alternate wedge, like the preferred version, has the minimum required alternating touches on the wedge sides, so it would usually complete with either a bottoming megaphone or a triangle continuation pattern.
The only important difference between the preferred and alternate falling wedges is that the alternate version allows a little more room for gold to rise before reversing to the bottom of its bottoming megaphone or continuation triangle. The only limit is that gold should not take out the high of the previous touch on the wedge top on this wave up.