It took over four months, but Gold finally made a decisive move this month.
I've mentioned before GLD and the higher time frame 2c-2d criteria setting up (monthly/weekly charts).
So, what you're looking for:
- Strong trend on the higher time frame (indicated by the slope and distance between the two moving averages).
- On the faster time frame (weekly in this case) you're looking for the 3d criteria, which often shows itself in the form of 3-pushes to a low or an inverse Head & Shoulders. The actual trigger bar occurred last week with the strong momentum bar breaking out from the Fib. fan (you could just as easily draw a neckline however you choose.
The immediate hurdle to digest is a small overhead gap between $165.33-$166. While the $172 area likely presents the most formidable resistance point. The overall objective with a setup such as this is a continuation of the predominant trend. So, essentially we'd like to see new highs over the next few months.
An important characteristic to watch is what happens with the fast line on the monthly chart going forward (which is just an indication of the strength of momentum). This development will be hinted at on the weekly chart, where we would like to see solid trend development, rather than being confined to this long-term consolidation.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.