TD Sequential accuracy for GOLD
Updated
Look how accurate the TD Sequential indicator has been on calling daily red 9's at the bottom of a down trend. Almost every bottom reached over the past 2 years was on a red 9. Simply amazing how accurate this system can be.
Now the bad news is that we've just started a red 1, which could potentially lead to another 8 days of downside until we get a red 9. The good news is that we've just finished on a weekly red 9 candle, so what the bulls want to do is to start a green count to the upside. If we get a green weekly 2 trading above a green 1 (for now i've disabled all numbers except 1 and 2 because it was cluttering the charts) , that would signal the possibility for a reversal. But I am still very cautious because the daily time frames have proven to be the most accurate at calling the bottom.
I have drawn a second trend line in blue. What I would like to see is another 8 days to the downside that stays above this line, which would give us our red 9. Then it's up to the bulls if we get a reversal from here. For now the green trend line is holding, and the stock market is showing some signs of temporary weakness so we could still see a reversal from this point. Personally I think we still have a bit more to go down, but I am still looking for a good buying opportunity between both the green and blue trend line. However, the 50 and 200 Day MA have just had a death cross which is pretty bearish, and the last time that happened we dropped 10%. I remain very cautious for GOLD
Good luck trading out there, hard one to call here.
Now the bad news is that we've just started a red 1, which could potentially lead to another 8 days of downside until we get a red 9. The good news is that we've just finished on a weekly red 9 candle, so what the bulls want to do is to start a green count to the upside. If we get a green weekly 2 trading above a green 1 (for now i've disabled all numbers except 1 and 2 because it was cluttering the charts) , that would signal the possibility for a reversal. But I am still very cautious because the daily time frames have proven to be the most accurate at calling the bottom.
I have drawn a second trend line in blue. What I would like to see is another 8 days to the downside that stays above this line, which would give us our red 9. Then it's up to the bulls if we get a reversal from here. For now the green trend line is holding, and the stock market is showing some signs of temporary weakness so we could still see a reversal from this point. Personally I think we still have a bit more to go down, but I am still looking for a good buying opportunity between both the green and blue trend line. However, the 50 and 200 Day MA have just had a death cross which is pretty bearish, and the last time that happened we dropped 10%. I remain very cautious for GOLD
Good luck trading out there, hard one to call here.
Note
Weekly timeframe. Do we get a reversal here? Not sure we do as the weekly 9's havn't proved as accurate as the daily.
Note
The price is currently at the Bear Flag target zone, which meets perfectly with the 0.786 line. Given how reliable the sequential system has been on red 9's, I am still waiting for this to signal a bottom. RSI is in oversold territory, which leads me to anticipate for a bounce soon. Hopefully we can get a strong bounce of a 9 with an oversold RSI , whilst staying above the blue trend line . This would give me confidence entering a position. An aggressive trader could start to scale in at this point, but personally I am waiting to see what the price does over the next 4 days.
Note
Looks like GOLD -0.46% will be ready for a bounce soon. We're about to get the 9, RSI is clearly oversold on the daily and we're just hovering above the blue trend line . Now whether this bounce will lead to a trend reversal is anyone's guess so I will be watching GOLD -0.46% carefully over the next few days.
Note
It looks like Gold 0.80% has bottomed and is reversing for now. We broke out of the symmetric triangle which formed over the last few days and have made a decent move to the upside. This has been the signal I have been waiting for to go long. I missed the buying opportunity last night however as I was asleep, but I will be looking to add a position once the RSI has cooled off a bit.
Note
We have dropped down substantially so no trade has been entered. It looks like GOLD is struggling to bounce so there's a chance we will drop down further from here.
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