Silver prices are moving lower as the precious metals market begins to show stronger correlation with gold. Earlier, I expected gold to decline, and silver now appears to be following the same bearish momentum. This is the moment when gold and silver start moving together.
I entered the silver trade after identifying the third wave of the downward move. In Elliott Wave analysis, Wave 3 is often considered one of the strongest and most important phases of a market trend. It usually appears after the initial direction is established during Wave 1 and a temporary correction occurs in Wave 2.
When Wave 3 begins, trading volume and momentum can increase as more market participants recognize the trend. However, the price action after Wave 3 is equally important because traders may begin watching for a Wave 4 correction or signs that the larger trend is losing strength.
In this silver trading setup, the key was not chasing the first drop. I waited for the market structure to develop, confirmed the relationship between gold and silver, and entered after the third-wave movement became visible.
The next price reaction could determine whether silver continues its bearish trend or enters a temporary correction. For traders following Elliott Wave patterns, understanding the structure after Wave 3 can be crucial when managing entries, exits, and market risk.
