Elliott Wave Analysis – XAUUSD (October 21, 2025)
🔹 1. Momentum
H4:
H4 momentum is currently turning bearish, indicating that the main trend for today is downward.
H1:
H1 momentum is stuck in the oversold zone, suggesting that price could continue to fall, but at the same time, there’s a risk of a short-term bullish reversal — this should be monitored carefully.
M15:
M15 momentum is also turning bearish, confirming the potential for short-term downside continuation.
🔹 2. Wave Structure
H4 timeframe:
The current price structure likely forms a Flat correction (W–X–Y in blue) as part of wave 4 (in purple).
The X wave appears completed, and price is now in the declining phase of wave Y.
Wave Y may develop in three possible forms:
Zigzag
5-wave impulsive
Triangle
👉 In Zigzag or 5-wave formations, the target is usually equal to wave A.
👉 In a triangle, price may build higher lows, respecting the upper boundary connecting wave 3 and wave X.
H1 timeframe:
The H1 structure mirrors H4, but note that H1 momentum remains in the oversold zone, meaning an upward reversal could occur anytime.
M15 timeframe:
Used mainly for entry timing.
Since H4 momentum trend is bearish, we will prioritize Sell setups, especially after liquidity retests or breakdowns on the M15 chart.
🔹 3. Trading Plan
Main bias: Bearish (following H4 momentum)
Strategy:
Focus on Sell setups when price retests or breaks below liquidity zones.
Consider Buy setups only if price reaches the 4190 support area, signaling a potential end of wave 4 (purple) and the start of wave 5 (bullish).
Buy setup (if wave 4 completes):
Buy zone: 4193 – 4190
Stop loss: 4180
Take Profit: 4236
🔹 4. Alternative Scenarios
If price breaks sharply above 4381, the current wave count will be invalidated, and price could head toward 4451.
If price forms a triangle, with 4381 as the upper boundary and higher-low supports forming the lower edge, a breakout above 4381 would signal a Buy opportunity.
