>any clue about why gold spiked? Is it in the charts? :)
>JMR
>
Jim dude - I totally told you it was starting a run up, recall???!?
And I told you it would go nust after it passed the resistance
established by the middle of the W.
The reason for the spike (rather than just a continual slow buildup)
http://futures.tradingcharts.com/chart/GD/61
is simply that on friday during the day it passed upwards through the
line of resistance at 275.00 (as seen on the chart above)
Notice on that chart, you see an incredibly obvious "double bottom"
or "W" formation.
It is so obvious that anyone in the world who has ever looked at any
chart would recongnize it!
Notice the high point around the middle of MARCH, the "middle" of the
"W"...being 275.
So - how do you "confirm" that a "double bottom" formation is in fact
a double bottom formation?
The answer is very simply that you watch it going up the right-hand
leg (as it has been doing), and, once it goes through that level (ie,
the "high point of the middle of the W" -- 275 in the chart at hand),
you "know" that it is "really" a double bottom formation.
Then, you just buy because you "cant lose", comfirmed-double-bottom
formations always head north.
Thus, for the last say 20 days as it has been going up the "right
leg", "everyone" has just been waiting for it to pass 275 (ie, the
height of the middle of the "W")
Thus, when it broke 275, during the day on Friday, everyone went nuts buying.
(Even more specifically, the unwashed hordes of amateurs probably had
vast numbers of stop orders in to automatically buy-at-market
[snicker] when it touched 275. Now, all of the pros [who exist to
take money from the amateurs] completely understood everything
mentioned above, in fact they could literally see the billions of $
of idiotic market-if-touched orders sitting there -- so, as easy as
taking candy from a baby, they just ran the price through 275 up ten
bucks in a few moments, so that all the long orders would fill at a
really hugh rate -- THUS, A SPIKE.)
{Also, as a curiosity, notice there was a funny little pullback
(lasting 4 sessions) a few seesions ago -- that was the pros faking
out all the kiddies who thought "I'll buy just before 275 - like the
pros!) .. so they just beat it down 5 bucks, which would have scared
off all the civillians and left them with a loss, before the
underlying pressure actually took it over 275.}
{I would guess there will be a pull back in, or for, the next few
days as the pros wipe out everyone's gains. I don't think that's "in
the charts" but more common sense.}
In short --- in an utterly, perfectly classic "W" or "double bottom"
formation, we were waiting for the right-hand-up-leg to cross through
the level of the top of the middle of the "W" .. it did this exactly
like in a text book on charting!!!
That example of gold in May 2001 will always be used in books on
charting forever, it is textbook perfect! It could hardly be more
perfect.
Waiting for a chart to break up throgh the "middle of the W" and
confirm a double bottom is probably the most basic and common
charting technique used!
Thus, everyone was doing it, hence the spike!!
You rock Jim!
cc to the egoldlist for everyone else who asked me!!!
People will rant about fundamentals now (supply, demand, politics,
consporacies, banks, and other crap) but it's .. all in the charts! :)
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