Gold (XAUUSD) — H4 Formation of a Potential Wave 3GoldOANDA:XAUUSDNewOneCryptoGold Spot / U.S. Dollar (XAUUSD) — H4 Formation of a Potential Wave 3 + Trendline Break (Bearish Continuation) 🔎 Market Structure (H4) On the H4 timeframe, Gold is forming the technical conditions for the development of a potential Wave 3 to the downside, confirmed by: a breakout below the corrective trendline (structure shift) completion of the corrective phase after the rebound rejection from the local resistance zone near the upper boundary of the structure weakening bullish momentum and transition back into seller control This setup fits a classic Elliott Wave continuation model, where Wave 3 often begins after price exits a corrective structure and resumes the dominant bearish direction. 📐 Elliott Wave Context Wave 1: initial impulsive move down Wave 2: corrective retracement into resistance Wave 3: expected impulsive expansion lower (current scenario) 📌 Key principle: The bearish scenario remains valid as long as price stays below the high of Wave 1. 📍 Entry Entry: 4,616.214 The entry is positioned: below the broken trendline (breakdown confirmation zone) inside the impulse activation area after correction completion aligned with continuation momentum rather than a reversal attempt 🎯 Target Levels (Wave 3 Projections) Targets are derived from projected impulse expansion zones and key reaction levels: TP1: 4,450.163 TP2: 4,248.689 TP3: 3,965.295 TP4: 3,671.939 Each target represents a potential reaction zone and a logical level for partial profit-taking during Wave 3 development. 🛑 Invalidation / Stop Loss Primary Stop Loss: 4,814.424 Adjusted Stop Loss: 4,721.380 📍 The primary stop is placed above the high of Wave 1, which: invalidates the bearish Wave 3 scenario if breached protects against a transition into an alternative bullish structure follows Elliott Wave risk logic with stop placement beyond the corrective extreme 📍 The adjusted stop at 4,721.380 becomes relevant if Wave 3 starts developing and structure confirms continuation. In that case: the stop can be moved behind Wave 2 risk is reduced once bearish momentum is confirmed position management becomes more efficient as the trend unfolds 🧠 Risk & Trade Management Trend-following setup Wave 3 can accelerate quickly, so risk control remains essential. Recommended approach: partial profits at TP1 / TP2 keep the initial stop at 4,814.424 until Wave 3 confirms once Wave 3 is realized, move the stop to 4,721.380 avoid increasing risk too early — scale only on intrawave pullbacks that respect resistance confirmation improves if price continues to hold below the broken trendline and prints strong bearish H4 closes 📌 Summary XAUUSD on H4 shows a corrective trendline breakdown and signs of Wave 2 completion, supporting the start of a potential Wave 3 to the downside. The bearish scenario remains valid below 4,814.424, with downside targets at 4,450.163 → 4,248.689 → 3,965.295 → 3,671.939. If Wave 3 confirms, stop loss can be tightened to 4,721.380 behind Wave 2.