USD/JPY: Multi-Timeframe Elliott Wave Setup – From 4H to Weekly

This is a beautiful multi-timeframe structure. Let me walk you through the setup layer by layer.

4-Hour Chart: Wave ((C)) of D – UsdJpy Ending Diagonal

The 4-hour shows the immediate action. We’re in the final wave of this corrective leg with an ending diagonal pattern (wave C of D). Notice the converging trendlines and overlapping waves – classic diagonal structure.

Key Points:

• Wave C of D looks nearly complete around current levels (154,452)
• The red dashed line is your confirmation trigger – a break below this line signals the ending diagonal is finished and we’re moving into pullback/wave E setup
• “Waiting for Break-Out” label shows we’re right at the edge
• Support zones marked: 0.618 (153.606), 0.382 (149.266), 0.5 (147.482)

What to watch: Break of the red dashed line = Wave C complete, pullback incoming.

Daily Chart: Full Wave D Structure

Zooming out to the daily, we see the complete wave D structure that contains the 4-hour action. This is the corrective triangle (wave D) within the larger wave 4.

Key Points:

• Wave A, B, C, D all visible in a triangle pattern
• We’re near D completion (which contains our 4-hour wave C)
• Wave E is the final leg of this correction coming next
• The triangle is converging toward E – which should be a smaller, final bounce

What this means: When the 4-hour breaks that red line, we get wave E on the daily. Wave E should be tight, contained, and smaller than the prior legs – classic triangle behavior.

Weekly Chart: Wave (4) – The Giant Triangle

Now pull back to the weekly, and you see the massive wave 4 correction that everything fits inside. This is the big picture context.

Structure:

• Wave A, B, C, D, E = the full wave 4 correction on the weekly
• We’re currently in D phase of this macro correction
• After D completes (after wave E on the daily), we get the powerful wave 5 impulse on the weekly

The Trade Setup:

1. 4-hour: Wave C breaks red line → Pullback to 0.618 (153.606)
2. Daily: Wave E unfolds → Smaller bounce in the E zone (151,000-143,000 range)
3. Weekly: After E completes → Major impulse wave 5 begins with strong directional move

Why This Matters

This isn’t just a reversal. You’re watching a corrective structure complete at multiple timeframes simultaneously. When wave D finishes and wave E plays out, you’ll have:

• Confirmed structure (4-hour break + daily pattern completion)
• Clear pullback zones (Fibonacci levels marked)
• Setup for the strongest move (weekly wave 5 impulse incoming)

Trading Action: Wait for 4-hour red line break → Confirm pullback to daily support → Position for wave 5 breakout. This is where the money is.

Silver (XAGUSD) Potentially Completing Wave C of Zigzag with Ending Diagonal Structure

Silver’s price action on the 4-hour chart has been exhibiting a textbook Elliott Wave zigzag correction, and current developments suggest that the terminal C wave may be approaching its conclusion with an ending diagonal pattern. This structure is of particular interest to both Elliotticians and active traders, as ending diagonals frequently signal an impending reversal or the final stage of a correction.

Context: The Ongoing Zigzag

After an impulsive downward leg, the ensuing corrective sequence has traced out a classic zigzag pattern: wave A established the initial rebound, wave (B) retraced a significant portion of (A), and the current wave C has unfolded with strong upward momentum. This is consistent with a standard 5-3-5 zigzag structure, where waves (A) and (C) are motive, and wave (B) is corrective.

A key Elliott Wave guideline is that wave (C) in a zigzag should itself display impulsive qualities, subdividing into five smaller waves. In some cases, especially near the end of complex corrections or when momentum begins to diverge, this fifth wave can form what’s known as an ending diagonal, also called a wedge or terminal pattern.

Technical Details: Spotting the Ending Diagonal

In the present silver chart, wave C has advanced within a narrowing channel, creating visible overlaps between minor subwaves—a hallmark of the ending diagonal pattern. Elliott Wave analysis dictates that ending diagonals comprise five subwaves (labeled 1-2-3-4-5), each constructed with three minor waves (a so-called 3-3-3-3-3 structure), and typically feature contracting or converging trend lines. These patterns signal exhaustion, as buyers and sellers become increasingly cautious near a major correction’s conclusion.

On the chart, resistance aligns with the upper boundary of the wedge and Fibonacci extension levels around 0.764 (52.357). Support can be anticipated at the lower wedge and near the 0.618 retracement level (51.063), providing clear reference points for risk management.

Expected Outcomes and Trade Considerations

Should the ending diagonal in wave C complete as anticipated, traders should watch for:

• A decisive breakdown below the diagonal’s lower trend line, which would provide early confirmation of a reversal.
• Potential acceleration to the downside as stops are triggered and trend-followers re-engage.
• Opportunities to align with the trend resumption, especially if price action confirms with volume expansion and wider candles.

Conversely, invalidation would require a sustained break above the diagonal’s resistance, suggesting the correction may not be over or has transformed into a more complex structure.

Broader Lessons for Elliotticians

This real-time example underscores the power and precision of Elliott Wave analysis. By identifying higher-order corrective patterns and then recognizing terminal structures within them, traders gain both risk management cues and early signals for trend reversal.

If you’re following the silver market or applying Elliott Wave to your trading, this is a prime opportunity to study structure in action. How will price resolve from here? Will the textbook structure play out, or does the market have another surprise? Join the discussion below and share your own analysis or questions.

Gold technical analysis reveals that XAU/USD continues to develop an expanding flat corrective pattern (A-B-C formation) on the 4-hour chart. After completing wave (iv), the current Elliott Wave gold price action suggests one more bullish push higher toward key resistance zones before a potential reversal. This gold price forecast is ideal for active futures traders and gold trading enthusiasts.

Current XAU/USD Wave Structure

• Elliott Wave Pattern: Corrective (A-B-C) Expanding Flat Formation
• Current Wave Position: Near completion of wave C, subwave (v)
• Gold Price Level: $4,114.77 (as of Nov 11, 18:09 UTC)
• Price Action Signal: Bullish continuation expected

Gold Resistance Levels – Fibonacci Extension Targets

Key resistance zones for gold trading strategies based on Fibonacci analysis:

• 0.382 Fibonacci Extension: $4,149.23 (First resistance)
• 0.5 Fibonacci Extension: $4,191.79 (Mid-level target)
• 0.618 Fibonacci Extension: $4,238.35 (Primary resistance zone)
• 0.764 Fibonacci Extension: $4,293.48 (Extended target)

The current XAU/USD technical analysis structure indicates that gold futures are approaching the final leg of the corrective wave before a potential deeper retracement. Traders employing Elliott Wave trading strategies should watch for signs of exhaustion or reversal patterns near the highlighted resistance zones.

Gold Trading Strategy – Day Trading and Swing Trading Setup

Short-term XAU/USD Outlook:

• Price Direction: Bullish continuation toward 4194–4238
• Risk Management: Monitor price action near Fibonacci resistance levels
• Stop Loss Level: Invalidation below $4,080 suggests alternate Elliott Wave counts

This gold trading setup is ideal for swing traders and day traders looking to capture the final push in this corrective wave formation. Using NinjaTrader or similar trading platforms, traders can implement tight risk controls and execute quick scalps.

Why Elliott Wave Gold Analysis Matters

Elliott Wave theory provides a structured approach to understanding market cycles and price patterns. For gold traders, recognizing corrective patterns like the expanding flat formation helps identify high-probability reversal zones. This technical analysis method combines well with volume analysis and price action trading for enhanced accuracy.

Gold Market Context

Gold markets have shown strong correlation with economic uncertainty and geopolitical factors. The current XAU/USD forecast reflects broader commodity trading trends and precious metals interest from institutional and retail traders.

Key Takeaways for Gold Traders

• Monitor the 0.618 Fibonacci level ($4,238) for potential reversal signals
• Use Elliott Wave analysis in conjunction with volume indicators for confirmation
• Apply risk management principles with stops below key levels
• Track gold price action near round numbers and Fibonacci levels

Primary Elliott Wave Structure

Wave Pattern: Corrective (A-B-C) Flat Formation

The current price action shows a developing correction that began from higher levels and has established a clear A-B-C structure. The pattern presents two distinct scenarios based on how the correction unfolds:

Scenario 1: Running Flat (Primary Count)

A running flat occurs when wave B reaches approximately the level of wave A, creating an efficient correction structure. In this scenario:

• Wave A completed at resistance levels
• Wave B is forming the consolidation phase
• Wave C is expected to complete near the 0.382 Fibonacci level at 4,076.47
• The correction maintains a tight, orderly structure

This pattern typically completes quickly and suggests a resumption of the prior uptrend.

Running Flat

Scenario 2: Expanding Flat (Alternative)

If the market structure extends beyond typical parameters:

• Wave B exceeds the high of wave A
• Price could extend to the 0.618 Fibonacci level at 4192.01
• The correction becomes more volatile and broader in scope
• Still maintains bullish bias after completion

The key distinction is that expanding flats are more aggressive corrections but ultimately resolve in the same direction.

Expanding Flat

3

Trading Setup: Tier 1 (Short Entry)

Primary Short Trade

Entry Zone: 4096.00
Target Level: 3725.54 minimum (Monitor Price Action for Extended Wave 3/C)
Stop Loss: 4141.48
Risk/Reward Ratio: 8.19:1

Rationale:

The entry at 4,096.00 positions traders at a key consolidation zone where wave (C) is actively developing. This level provides an optimal balance between confirming the Elliott Wave structure and managing entry risk. The primary target of 3,725.54 represents an extended wave (C) completion point, with traders monitoring price action closely as this target approaches to adjust exits if necessary.

The stop loss at 4,141.48 provides tight risk control while remaining above critical structural support levels. However, traders should watch for price reaction in this area before entering, as the market may hold or break through these levels. If price closes significantly above 4,141.48, reassess the entire corrective wave count, indicating a potential shift in market structure and potentially invalidating the current setup.

Position Management:

• Confirm entry: Wait for price to show weakness at 4,096.00 (do not force entry)
• Monitor stops: Watch for reaction committing full position
• Scale entries: Consider entering in 2-3 tranches rather than all-in
• Manage flexibly: Adjust stops if price action suggests a different wave structure

Trading Setup: Tier 2 (Liquidity Sweep & Wave (ii) Bounce)

Understanding Sell-Side Liquidity

Above the 3,953.79 level, there exists institutional sell-side liquidity—areas where sellers have placed orders and stops. Professional traders understand that markets often move to capture this liquidity before reversing. This creates a high-probability reversal zone.

Long Entry After Liquidity Sweep

Liquidity Sweep Level: 3,953.79 (Fibonacci Confluence + Sell-Side Pool)
Wave Structure: Internal wave (ii) bounce within wave (C)
Trade Type: Swing reversal after institutional sweep
Target: Wave (iii) extension higher

How This Works:

1. If wave (C) extends deeper than the primary target, price will likely sweep through 3,953.79
2. This sweep captures stop-loss orders and institutional liquidity
3. After the sweep, smart money enters long positions
4. Price reverses sharply for wave (ii) bounce → wave (iii) impulse
5. Internal wave (iii) can provide significant profit potential

Risk Management:

• Position size smaller than primary trade (this is a secondary opportunity)
• Stop loss placed below the swing low
• Take profits at 0.618 Fibonacci extension
• Only enter if liquidity sweep actually occurs

Elliott Wave Theory Applied

Understanding the Corrective Structure

Elliott Wave Theory teaches that markets move in five-wave impulses and three-wave corrections. A flat correction specifically refers to an A-B-C pattern where:

• Wave A: Declines in a 5-wave structure
• Wave B: Bounces significantly higher (typically 50-78.6% of wave A)
• Wave C: Declines again to complete the correction

The running and expanding variations depend on how wave B retraces wave A.

Why These Levels Matter

Fibonacci retracement levels (0.382, 0.5, 0.618, 0.764, etc.) are derived from mathematical ratios found throughout nature and markets. These levels act as magnet points where price often reverses or consolidates, reflecting areas of institutional order clustering and algorithmic support/resistance.

Risk Management Principles

Position Sizing:

• Risk only 1-2% of total account on any single trade
• Adjust position size based on distance to stop loss
• Smaller positions for extended scenarios (Tier 2)

Invalidation Levels:

• Primary invalidation: Close above 4,193.77 (cancels running flat count)
• Secondary invalidation: Close below 3,950 (may extend further)
• Always respect your predetermined invalidation; don’t “hope” price reverses

Trade Management:

• Partial profit-taking at primary targets (reduces risk)
• Trailing stops on extended positions (captures larger moves)
• Don’t let winners turn into losers (protect your capital first)

What to Watch For

Confirmation Signals:

• Bearish engulfing candles near 4,135-4,160 resistance
• Volume confirmation on the move toward 4,076.47
• Price holding above micro-support levels during the decline
• RSI divergence suggesting reversal potential

Warning Signs:

• Price closing above 4,193.77 invalidates the count
• Extended sideways consolidation instead of directional move
• Multiple failed attempts to break lower support
• Fundamental news events that shift market sentiment

Educational Takeaways

This setup demonstrates several key trading principles:

1. Multi-Scenario Flexibility: Professional traders don’t have just one plan—they map multiple scenarios and adjust accordingly
2. Confluence Zones: The strongest trading opportunities occur where multiple concepts align (Elliott Wave + Fibonacci + Liquidity)
3. Risk/Reward Clarity: Before entering any trade, identify exact entry, target, and stop levels for precise risk management
4. Institutional Order Flow: Understanding where smart money places orders (liquidity zones) reveals high-probability reversal points
5. Patience and Discipline: The best trades often require waiting for specific confirmations rather than forcing entry prematurely

Current Market Status

As of November 6, 2025, gold is consolidating within the corrective structure with price action contained between 4,135-4,160. The path of least resistance appears downward, with the primary target of 4,076.47 acting as the next significant reference point.

Traders should monitor the behavior at resistance levels and watch for signs of wave (C) completion. The risk/reward ratio of 11.8:1 on the primary short setup makes this an attractive opportunity for disciplined traders following strict position management rules.

Disclaimer

This analysis is provided for educational and informational purposes only and should not be construed as financial advice or a recommendation to buy or sell any security. Past performance does not guarantee future results. Trading and investing involve substantial risk of loss. Always conduct your own research and consult with a financial advisor before making trading decisions. The strategies discussed carry significant risk and are not suitable for all traders.

Primary Count: Wave (2) correction in progress, forming a classic “Flat” correction pattern. Currently consolidating in the 200.806–201.228 range.

Wave Count Invalidation: @200.899

4HR Chart

15 Min Chart

Primary Count: Wave (2) correction in progress, forming a classic “Flat” correction pattern. Currently consolidating in the 200.806–201.228 range.

GBPJPY Elliott Wave analysis has presented a compelling Elliott Wave setup, and our recent analysis predicted a converging triangle pattern that would lead to a significant drop. This post documents our forecast, the price action that followed, and the key lessons for traders using Elliott Wave methodology.

Recent Twitter Posts on GBPJPY

These charts reveal precise Elliott Wave labelling, Fibonacci retracement levels, and critical support/resistance zones across each timeframe.

---

GBPJPY Monthly Chart

Showing the bigger picture for our sell targets

The monthly timeframe Elliott Wave count suggests we are currently trading within a complex triangle structure in wave (E), which is likely to target the 0.618 (192.422) and 0.764 (189.401) Fibonacci levels shown on the chart below. This long-term perspective provides strong conviction in our directional bias and profit targets.

---

On the 4-hour timeframe, price action has progressed exactly as our Elliott Wave count predicted. Wave (3) is currently driving lower toward the 1.618 extension at 197.339, with a deeper target at the 2.618 extension at 193.670.

#GBPJPY 4H: #TrianglePattern Forming

Clear Elliott Wave structure shows a converging triangle pattern developing
as wave (4) correction.

Key Levels:
? Upper Triangle: Wave C 204.06
? Lower Triangle: Wave B 201.93
? Wave (5):Target 200.03#ElliottWave #ForexTrading pic.twitter.com/iHnAen90wX

— Elliott Wave Insights (@EWaveInsights) October 27, 2025

Join our Discord