Wednesday, June 17, 2009

Spot Gold -- Not Just a Simple Trendline

that trendline on Gold (see yesterday's post) isn't as simple as it seems. fiddling with the chart this afternoon I discover that it is actually the .618 speedline of the range between 865 and 990. see the diagonal line on the following chart.



now on the longer-term chart see where the same .618 speedline extends backward.



the more I play around with speedlines - whether Plastic or Golden - the more convinced I become that so-called 'trendlines' are meaningless in themselves, and only proportional speedlines have any significance. or perhaps the only simple trendlines that are significant are those that coincide with speedlines.

more on this later, either here on the blog, or in the newsletter.

update: that line is also the .618 speedline of the rally from 680 to 1007, because, as subscribers have been aware for a while, the rally from 865 to 990 had exact same angle of ascent as the previous rally.