Au related Relative Strength charts

[Au-myn]

Chart 1: COMEX Gold vs DOW is currently at its bullish support line at 12.5. After topping last August at 17.5 on a Bearish Signal formation sell signal in September at 15 followed by a #1 Double Bottom pattern sell signal at 13.5. Should get a bounce off of the bullish support line.

Chart 2: DOW / DOW bullish percentage.

When the Index is going up and the bullish % is going down, there is the probability that the market is making a top.

Chart 3: Gold Miners Index (GDM). The exact opposite is occurring which means this index has most likely bottomed.

[andial]

It would be nice to see the miners a strong sector in the market. We will see what happens.

[Au-myn]

High Pole:
A high pole forms on an upside breakout when a column of X's exceeds one or more previous tops by at least three squares. The following column of O's then retraces more than 50% of the advance in the breakout column. If a high pole occurs during bull markets markets, it means near-term weakness and a possible correction. A high pole during a bear market usually warns of a topping process.

High Pole at the Bearish Resistance line:
The difference in this formation from a high pole is that the last up column penetrates a bearish resistance line on the way up. As Michael L. Burke would say, "this is a deadly formation".

Note the bearish resistance line drawn to the right of the Triple bottom formation.

[Au-myn]

This chart is an update from the original chart I posted for a High pole warning.

The DOW issued a second consecutive sell signal under its bullish support line on this ST (50x3) P & F chart. I illustrated most of the chart in order to make it easier for some viewers that are not too familiar with P & F charting - with the exception of the two blue ST bullish support lines - where two of the three sell signals occurred as the chart would be too cluttered.

I would anticipate further downward movements in this index in the near-term.

[southfork]

This chart is an update from the original chart I posted for a High pole warning.

The DOW issued a second consecutive sell signal under its bullish support line on this ST (50x3) P & F chart. I illustrated most of the chart in order to make it easier for some viewers that are not too familiar with P & F charting - with the exception of the two blue ST bullish support lines - where two of the three sell signals occurred as the chart would be too cluttered.

I would anticipate further downward movements in this index in the near-term.

I would agree with further downtrends, the charts however cannot reflect the depth the criminal governemnt and bankers will to in order to keep peoplel out of tangible investments.

[Eat Beef]

AuMyn, the Price Objective is 12150? Is there one lower? We could make that tomorrow?!?!?!

[Au-myn]

AuMyn, the Price Objective is 12150? Is there one lower? We could make that tomorrow?!?!?!

That PO is from stockcharts.com. I usually whiteout it as some of the computer generated PO's are not correct. I calculated a PO of 11650 on a vertical count from the sell signal after the high pole warning. After receiving the first "buy signal" formation a second price objective may be taken upon the following sell signal. I will keep you informed.

[Eat Beef]

Roger, thanks for the charts AND the explanation.

[RichG]

Great to see you posting. All your posts are great stuff!! A natural Hall-Of-Famer and a tireless Founder.

[Au-myn]

Thanks, RichG.

Most of the charts that I post relate to PM's in general. Some Members get a bit emotional when the metals and their PM stocks turn south. Applying a non-emotional mind set and posting a chart with technical information can help some people better understand the movements even with the manipulation within the markets.

[Au-myn]

Time to update the DOW and BPDOW.

The sell-off has begun for the DOW and confirmed by the "bear alert" on the bullish percentage chart.

At this time there are no updates for the GDM or BPGDM.

[Au-myn]

Here is a Relative Strength P & F chart we used to discuss several years back on GIM. COMEX gold vs. the BKX, otherwise known as the "Banksters Index". We found it to be a good tool when looking for trend reversals in Au.

This scale is 50x3 (50 points/square and three square reversal). This scale has clear patterns and well defined trend channels. The current formation - A variation of a Triple Top reversal (OXOXOX) - issued a buy signal recently at 3600. Should the reversal continue, the first bullish resistance line (broken blue) would be taken out and there would be a run to the LT bearish resistance line. Once a buy signal above the line occurs, the RS chart would turn bullish.

[Au-myn]

I have some updates on the DOW sell-off.

Another sell signal was issued this a.m. at 12300 on a Triple Bottom formation. This sell signal has penetrated its first bearish support line so a second one was drawn in. Current bearish support is 11700.

The DOW bullish percentage chart has moved down slightly since the last update from 68% to 64%.

[Au-myn]

Busy day for updates...

The COMEX Au / Banksters Index moved up nicely today as it issued another buy signal on a #1 Double Top formation at 3750.
Pressure is being applied on two fronts - the first bullish resistance line (broken blue line) and the LT bearish resistance line. In most cases the stock, in this case Index, reverses in a row of O's followed by a run at the LT bearish resistance line (X's) as that is the key to turning the chart bullish. That scenario would not only set up penetration of the line but also issue a buy signal above it which would turn the chart bullish.

[andial]

It would be nice to see the miners a strong sector in the market. We will see what happens.

Well it happened and yes, it is nice.

[Strawboss]

Not that Au-Myn needs my endorsement or anything (he is a founder of GIM), but, I will give it anyways.

I have been a student of the markets for many years, and have done deep dive analysis of all sorts of technical charting methodologies - studies involving RSI, MACD, Stoch's, Ichimoku clouds, Williams %R, etc...

My experience has been that they are sometimes right - sometimes wrong. The next logical progression is to use multiple indicators in conjunction with one another as a way of trying to improve accuracy and predictive powers.

My conclusion is that they dont work. Not nearly enough to be useful on an ongoing basis.

Au-myn has spent a considerable amount of time teaching me about how P&F charts work - some formations to identify, sources of deeper learning, experts to learn from, etc... and I am very grateful for the efforts on his part to help me.

P&F charting is the oldest form of technical analysis. It was used by floor traders before the advent of computers. It is so simple that I think most people overlook it because it isnt sophisticated enough for them.

All it does is measure buying/selling at defined price points. It is a reflection of supply/demand.

Going forward - all of my analysis and trading decisions will be based solely on what the P&F charts tell me. My hope is that over time, I can learn more and more about this ancient craft and some of the more nuanced predictive patterns such as the bullish catapult.

I owe Au-Myn a HUGE measure of gratitude.

Thank You Sir!

[Au-myn]

The Gold Miners index Bullish Percentage P & F chart (2x3 scale) is on Bull Alert status as the Index moved up 3.57 points today to 21.42. A positive sign that gold stocks are on the move up.

[Au-myn]

Looks like the Gold Miners Bullish Percentage may have bottomed out.

[Au-myn]

The times they are a changin'...

[Au-myn]

The BPGDM continues to rise...now at 32%.