“Three Peaks and the Domed House” Pattern for Gold is saying…
My version of George Lindsay’s basic model uses a macro or “phase-counting” approach which is different from Lindsay’s classical micro approach (which uses “number-counting” from 1 to 28) in that it divides the “Three Peaks and the Domed House” pattern into five major phases as follows:
- Three Peaks
- Basement
- First Floor
- Roof
- Plunge
The “Plunge” phase typically comprises two powerful down-waves. The first down-wave from point 25 to point 26 has finished. Now gold could be still near point 27 right before the second powerful, also most severe, down-wave from point 27 toward point 28. The price target is projected at 1300 which is the lowest price of the entire pattern.
As the chart above depicts:
- the “Three Peaks” Phase - points 2 through 9 - in gold developed during the months of November and December 2010
- the “Basement” phase (bear trap) – points 10 through 14 - formed in late January of this year when gold had a separating decline to reach a low at $1310 per ozt. in early February
- the “First Floor” phase – points 15 through 20 – of the Domed House was built during May and June
- the “Roof” phase (bull trap) – points 21 through 25 - began in early July and concluded in August
The “Plunge” phase has been underway since early September and gold could now go as low as$1,290/ozt. to $1,300/ozt. before moving higher again.
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