Short-term trading with Elliott waves - a textbook gold trade

As the price of gold surged in late December, an opportunity arose to trade against the crowd. Here's a good example of how to use Elliott wave theory to cash in as a bull run ends.

As a swing-trading spread-better, I am on the lookout for situations that offer good profit/risk potential. These situations can be both long and short trades in any type of market conditions, whether it is in a bull run, a bear run, or just consolidating.

Gold is one of my favourite vehicles. It trades virtually 24 hours and is highly liquid. It also has the benefit of being the subject of intense speculation. Even professional money managers, who previously had dismissed gold as a 'barbarous relic', are now taking great interest in this market.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.