The History of Gold Charts by Peter Brandt (Part 2)
Daily chart – July 1983 through March 1985
Key features
- Completion of 13-month H&S top and descending triangle in Oct 1983 (labeled I and J)
- Completion of a H&S bottom failure (labeled K) in early July 1984. (Note: the H&S failure pattern is considered to be a singular chart configuration in classical charting theory.)
Weekly chart – September 1983 through January 1988
Major chart construction K. H&S failure completed in July 1984 L. Symmetrical triangle completed in early August 1986 M. Symmetrical triangle completed in early April 1987
Daily chart – December 1985 through February 1986
Key features
- Area island bottom completed in Mar 1985
- Sidways price action from Mar 1985 through late Dec 1985 was an indication that the market was in the process of making a much longer chart congestion prior to the next trend. There are times when Gold will frustrate chart traders. But eventually the Gold market will announce its next big move. When the Gold market puts chartists through prolonged agony it is important to remember that the market is just marking time.
Daily chart – January 1986 through December 1986
Key features
- Major symmetrical triangle (labeled L) completed in late Jul 1986. Led to a 47% increase in price within 8 weeks.
Daily chart – September 1986 through November 1987
Key features
- Major symmetrical triangle (labeled M) completed in late Mar 1987 led to a quick 15% price advance
Weekly chart - July 1987 through September 1993
Major chart construction N. Major wedge completed in November 1989 O. Major wedge completed in April 1993
Daily chart – December 1987 through September 1989
Key features
- Major wedge (labeled N) developed through this period. The appearance of wedges should always put chartists on guard for a big price thrust.
Daily chart – August 1989 through October 1990
Key features
- Completion of major wedge (previously labeled N) in Nov 1989
- Double top completed on Mar 20, 1990
- Beginning stages of another major wedge beginning in Aug 1990
Daily chart – July 1990 through May 1992
Key features
- Formation of a massive falling wedge pattern (labeled O)
Weekly chart – 1992 through May 1998
Major chart construction P. Descending triangle in 1997 Q. Flag in 1997
Note also the “end-around” symmetrical triangle completed in September/October 1996
Daily chart – December 1992 – October 1994
Key features
- Completion of major wedge in Apr 1993 (labeled O)
- Beginning stages of an “end-around” symmetrical triangle failure sell signal.
Daily chart – October 1994 – August 1996
Key features
- Symmetrical triangle was completed in Jan 1996, but quicky ran out of gas. This set the stage for an “end-around” sell signal. This was a confusing chart development for traders. But in Gold, the failure of a pattern to produce an expected outcome almost always leads to the opposite outcome. See the opposite outcome on the next chart.
Daily chart – June 1996 through August/September 1997
Key features
- Outcome of “end-around” from Jun 1996 through Feb 1997
- Major descending triangle completed in late Jun 1997 (labeled P)
- Major flag (labeled Q)
We will continue in the next post...
.. read the full post on Peter Brandt's Official Website
Article Syndicated by @yuriitonkov
Author Bio:
This article was written by Peter Brandt. An author, financial blogger and commodities trader.
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Learn more about Peter Brandt on his website
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