Last night, I was driving down the highway listening to my favorite oldies station when the long-forgotten drawl of Kenny Rogers (circa 1978) swaggered onto the air:
“You got to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run…”
To this day, the “Gambler’s” lyrical advice remains the ultimate metaphor for coming out ahead in the game of life and love. And the “knowing” – well – it comes from the gut, from an uncanny ability to “read” your opponents’ faces and discern when to cut your losses and run.
For Elliott Wave analysis, however, “knowing” does not come from a feeling. It comes from any number of clear and objective FACTS that signal whether NOW is the time to stay in OR get out of certain high-probability trade set-ups.
These are: Compelling wave patterns, satisfied Fibonacci time or price relationships, and sustained moves above or below critical trendlines -- to name a few.
And, in the July 29 Daily Futures Junctures, long-time editor and Elliott Wave International's chief commodity analyst Jeffrey Kennedy identified ALL of the above "knowing" signs for one major market in particular.
Fact is, the wave pattern underway in this market is not just “compelling." It is the most arresting of all 13 recognizable Elliott Wave configurations: The Diagonal Triangle. In Volume Two of his Trader's Classroom Collection e-book, Futures Junctures Service editor Jeffrey Kennedy explains exactly why this pattern is so special:
“Diagonals consist of five overlapping waves that each subdivide into three smaller waves. They are terminating waves and … introduce swift, tradable moves in prices and provide specific protective stop levels and trade objectives.”
To get a visual picture of this pattern at work in real time, here is the July 29 DFJ's labeled close-up of the market.
In this case, the wedge at hand is an “Ending” diagonal triangle. They occur primarily in the fifth wave, or C-wave positions at times when the preceding move has gone "too far too fast," indicating exhaustion of the larger trend.
Turns out, the diagonal is not the only "ace" up DFJ's sleeve. Jeffrey Kennedy also reveals that a classic Fibonacci relationship of equality has been satisfied between waves (3) and (5). AND -- prices have just penetrated a critical intraday trendline. In all, the evidence is stacking up for a very "exciting" hand.
So, what are you waiting for? Get the complete Futures Junctures Service today and have the July 29 DFJ on your screen in minutes. Click HERE to begin.