gold bullion, dinar, dirham, gold, silver, jewellery

Monday, November 14, 2011

Gold pattern

“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:
  1. Three Peaks
  2. Basement
  3. First Floor
  4. Roof
  5. 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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