Taking a look at Gold this morning and a pattern which seems to repeat in this commodity is the inverted roof, take a look;There's a striking similarity between the current pattern we find ourselves in and that from mid-2008 (the second Inverted Roof pattern highlighted on the above chart) where price broke out, only to result in a fake-out and rush to cover.
Similarities exist between Inverted Roof patterns and Inverted Head & Shoulder patterns, and it looks as though price has recently traced out an inverted H&S pattern, which could play out shortly (interesting that within the current inverted H&S there was also a little H&S pattern within).
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.