P1: PIC/PIC c05
August 18, 2008
Printer: Yet to come
Beyond Traditional Cycles
They are too close together to focus on each individually. The 100% low-low projection is December 19, right in the middle of the ATP projections. The ATPs and the low-low cycle projection have narrowed the relatively broad time retracement zone to December 17â€“22, a four trading day range (a weekend is in this period) when a Wave-C low and possible end of a corrective decline is probable. This is powerful information based on the actual time range of sections of the recent trend and possible correction, not based on so-called historic cycles which are likely to be no longer relevant to recent market trends and volatility. Figure 5.9 shows how it turned out. A Wave-C low was made on December 18, right in the December 17â€“22 time target for a low which was projected in advance. The XAU reached a price target for the low where the 50% price retracement and 62% alternate price projection coincided, also projected in advance, and where the daily momentum was oversold and made a bullish reversal two days after the extreme low in price and time. Time, price, pattern, and momentum were all pointing to the same thing: a probable Wave-C low and ideal setup for a continuation of the bull trend to a new high.
FIGURE 5.9 Time, Price, Pattern, and Momentum Reversal at Corrective Low