I should have updated this chart some time ago. In my previous post you can see that the Elliott Wave count indicates the completion of a wave 4 up. It's always nice to see a classic wave 5 scenario unfold as expected. The decline blew through my intermediate targets and went straight for the new low. The previous chart shows us Gann Time Cycles which are indicated by two sets of the blue and yellow lines. Here's what is very important to notice...
Wave "a" of (2) indicated by the vertical blue lines, matures at a time cycle duration of 1.406 degrees.
Wave "c"of (2) indicated by the vertical yellow lines, matures at a time cycle duration of 5.625 degrees.
Wave "a" of (4) indicated by the second set of vertical blue lines, matures at a time cycle duration of 2.812 degrees.
Wave "c" of (4) indicated by the second set of vertical yellow lines, matures at a time cycle duration of 11.25 Degrees.
These Gann time cycles show us a predictable time symmetry between corrective waves of the same degree. As you can already see, the price cycles of corrective wave (4) were exactly twice the duration as the corrective waves of (2).
"a" of 4 = 1.406 ^2 or 2.812
"c" of 4 = 5.625 ^2 or 11.25
The Gann time cycles used in this trade setup worked remarkably well and I will be sure to test this time cycle algo on additional instruments in the future! This was the first time I compared time cycles of alternating price patterns in this fashion, and I was very excited to see it work with such accuracy.
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