The price retraced a bit, then the second part of the move went from 1340 to 1488 (same contract). That’s 148 points.
148 / 67 = 2.21.
If the ratio is much over 1.6, the wave is highly likely to be a leg of a triangle or wedge. Because the price has dropped to a new low, it would have to be a descending wedge.
Wedges are a must-play for me. Very high returns.
This will be a playable bottom (assuming the price breaks out the top of the wedge), but no way to tell if this is the final bottom for gold.
You need triangles and/or wedges to reverse a significant move because these formations are the footprint of big money changing sides, and it takes big money changing sides to reverse a significant move.
Assuming the price on the E-mini/SPX makes it back to the potential neckline after having broken out of the bottom of the short-term ascending wedge, a triangle moving sideways there would improve the odds of the price breaking through the 200 dma and trend line from the October 2011 low.