Elliott Wave Theory in commodity markets. Key differences: wave 5 extensions are more common; impulse waves can be steeper; seasonal factors interact with wave patterns.
Description
Commodity markets (gold, oil, agricultural products) display Elliott Wave patterns with some distinctive characteristics. Wave 5 extensions are more frequent in commodities than in equities. The speculative nature of commodity markets can produce steeper impulse waves and more volatile corrections.
Key Points
- Wave 5 extensions are more common in commodities (especially gold and agricultural markets)
- Impulse waves can be steeper and more volatile than in equity markets
- Seasonal cycles interact with Elliott patterns — be aware of seasonality in agricultural commodities
- Gold: often shows inverse relationship to USD and equities at major turning points
- Commodity super-cycles (multi-year bull/bear markets) correspond to Cycle/Supercycle degree waves
