Trading with PT style
- Thread starter praveen taneja
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By Stephan Bogner
If taking the gold price since late 2009 into perspective, it strikes the eye that another consolidation (beneath a blue resistance after a light-green boom) started in August 2011. Such a sideways consolidation is also defined as a (blue-green/red) triangular price formation, whereas the (light-green) booms represent the final movements (out) of triangles (so-called “thrust“). In early 2012, the upper (blue) triangle-leg at approx. $1,700 was broken, whereafter the price spiked to the $1,900-level (so-called “breakout“) and subsequently fell back to the apex of the triangle (so-called “pullback“). As the breakout and pullback are completed already and the price just started to move up yesterday after having landed on the triangle-apex a few days ago, we now anticipate a strong and longer-termed thrust to the upside. Principally, the goal of a thrust is to break the high of the breakout ($1,793) and the triangle ($1,918) and transform them into new support – in order for a new and longer-termed upward-trend to start thereafter. A sell-signal la thrust to the downside is not given until breaching the triangle-apex ($1,640), the 260-day EMA (currently at $1,620) and the green-dashed support (currently at $1,600).
Although the gold price commenced its new and long-term upward-trend in 2001, it were the price movements as early as 1999 that “paved the way to the upside“ (respectively sketched the green upward trend-channel). Principally, it is valued as a very bullish sign if the uppermost resistive (green) trend-channel is broken and successfully transformed into new support – as typically a new and strong boom commences thereafter. After the successful breakout in mid-2011 from approx. $1,600 to $1,900, numerous pullbacks occurred to the (formerly resistive) green trend-channel – in order to test and (potentially) confirm it as new support. This breakout and pullback took the form of a (blue-green) triangle out of which a thrust to the upside commenced recently. We anticipate a dynamic increase in price appreciation after rising and holding above the red resistance at approx. $1,800.
If taking the gold price since late 2009 into perspective, it strikes the eye that another consolidation (beneath a blue resistance after a light-green boom) started in August 2011. Such a sideways consolidation is also defined as a (blue-green/red) triangular price formation, whereas the (light-green) booms represent the final movements (out) of triangles (so-called “thrust“). In early 2012, the upper (blue) triangle-leg at approx. $1,700 was broken, whereafter the price spiked to the $1,900-level (so-called “breakout“) and subsequently fell back to the apex of the triangle (so-called “pullback“). As the breakout and pullback are completed already and the price just started to move up yesterday after having landed on the triangle-apex a few days ago, we now anticipate a strong and longer-termed thrust to the upside. Principally, the goal of a thrust is to break the high of the breakout ($1,793) and the triangle ($1,918) and transform them into new support – in order for a new and longer-termed upward-trend to start thereafter. A sell-signal la thrust to the downside is not given until breaching the triangle-apex ($1,640), the 260-day EMA (currently at $1,620) and the green-dashed support (currently at $1,600).
Although the gold price commenced its new and long-term upward-trend in 2001, it were the price movements as early as 1999 that “paved the way to the upside“ (respectively sketched the green upward trend-channel). Principally, it is valued as a very bullish sign if the uppermost resistive (green) trend-channel is broken and successfully transformed into new support – as typically a new and strong boom commences thereafter. After the successful breakout in mid-2011 from approx. $1,600 to $1,900, numerous pullbacks occurred to the (formerly resistive) green trend-channel – in order to test and (potentially) confirm it as new support. This breakout and pullback took the form of a (blue-green) triangle out of which a thrust to the upside commenced recently. We anticipate a dynamic increase in price appreciation after rising and holding above the red resistance at approx. $1,800.
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