# SILVER Elliott Wave Technical Analysis

By: Lara Iriarte | Fri, Oct 24, 2014

Sideways movement has confirmed an end to minor wave 1.

Larger Image

At this stage it looks like minor wave 2 may be a shallow correction, maybe only reaching up to the 0.382 Fibonacci ratio of minor wave 1 at 18.408. Second waves are most commonly deep corrections, but they are not always deep. That is a tendency not a rule.

So far minor wave 2 may be labeled minute wave a-b-c or w-x-y.

So far the first upwards movement within minor wave 2 subdivides as a zigzag. This may be either minute wave a within a flat correction for minor wave 2, or the first zigzag in a double zigzag for minor wave 2, or a zigzag as the first structure of a combination for minor wave 2.

If minor wave 2 is a flat correction then within it minute wave b must reach a minimum 90% length of minute wave a at 16.799. Minute wave b must subdivide as a three wave structure.

If minor wave 2 is a double zigzag then minute wave x should be a relatively shallow correction. The purpose of double zigzags is to deepen a correction when the first zigzag does not move price deep enough. To achieve this purpose their X waves are normally very shallow.

If minor wave 2 is a double combination then minute wave x be a deep correction. The purpose of double combinations is to take up time and move price sideways. To achieve this purpose their X waves are commonly rather deep (and may be very time consuming).

Within minute wave b downwards (or minute wave x) at 16.673 minuette wave (c) would reach 1.618 the length of minuette wave (a).

If minor wave 2 is an expanded flat or combination then minute wave b or x may make a new price extreme beyond the start of minute wave a or w. A new low below 16.685 is possible. There is no lower invalidation point for this reason.

## Author: Lara Iriarte

Lara Iriarte
elliottwavegold.com

Elliott wave is one of the more difficult and complicated technical analysis tools. When done right it can be uncannily accurate.

I have been using the Elliott wave principle to analyse up to five markets a day since 2008. I began Elliott Wave Forex (originally ForexInfo.us) in 2009 to provide daily analysis of EURUSD and GBPUSD, then I began Elliott Wave Stock Market in 2010. Elliott Wave Gold began in August, 2013. Currently I provide daily analysis of Gold on this site, and daily analysis of the S&P 500 on Elliott Wave Stock Market for its members.

I have a science background (BSc) which has trained me to think logically and be evidence focussed. Over the years I have seen no market movement which does not fit into the clear and restrictive rules for Elliott wave structures.

I have members who are fund managers, institutional investors and professional traders.

If you want to learn how to apply the Elliott wave principle to any market my analysis service is designed to teach you, daily, how to do this.