Elliott Wave Analysis – XAUUSD (October 22, 2025)
🔹 1. Momentum
D1:
The D1 momentum is preparing to turn bullish, signaling the start of a new upward trend.
→ We can expect at least 3–5 consecutive bullish days ahead.
H4:
We need to wait for the H4 candle to close to confirm the reversal signal.
If confirmed, there’s a strong possibility that today will form an intraday uptrend.
H1:
H1 momentum has already turned upward, but it’s now in the overbought zone.
Therefore, the current rise won’t be strong, and a minor pullback is needed to bring momentum back to the oversold area — creating a foundation for a more stable bullish move.
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🔹 2. Wave Structure
D1 Timeframe:
Yesterday saw a sharp decline, but D1 momentum is now preparing to reverse upward.
Counting the correction candles, we already have five candles, suggesting that the market may soon enter a new bullish phase lasting 3–5 days or more.
During this recovery phase, we need to monitor two key scenarios:
• If wave movements overlap and lack strength, and when D1 momentum returns to the overbought zone but price fails to break the previous high, then the Wave 4 (yellow) scenario is still in play.
• If price rises sharply and decisively, the recent correction might only be part of Wave 3 (yellow), meaning the bullish trend is continuing.
H4 Timeframe:
Yesterday’s structure was identified as a Flat correction, and it remains valid.
Price has retraced into the Wave 4 zone of the smaller degree structure, reaching the 2.0 Fibonacci extension of Wave A.
If Wave 5 (purple) is now developing, the ideal target would be around 4476.
However, if price rises with overlapping waves, this could instead represent a corrective move within Wave 4 (yellow), targeting the previous high zone between 4381 and 4476.
H1 Timeframe:
Within Wave W, there is a small Flat correction, where Wave C extended to twice the length of Wave A.
Now, Wave Y (blue) has also declined to 2× Wave W, suggesting weakening buying power.
Even so, in the short term, we still expect an intraday bullish move today.
→ The trading bias remains buy-side until H4 momentum reaches the overbought area and reverses.
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🔹 3. Trading Plan
Buy Zone: 4101 – 4098
Stop Loss (SL): 4088
Take Profit 1 (TP1): 4190
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🔹 4. Notes
Liquidity and resistance zones are already marked on the chart.
→ Wait for price to break and retest those areas to confirm a valid Buy setup.
