Learn how this one little known technical indicator has been nailing the price swings in gold.

Learn how this one little known technical indicator has been nailing the price swings in gold.

Happy New Year everyone!

This is my first video for 2011 and I think it's an important one to kick off the New Year.

As you well know, gold took one of its biggest drops in quite some time on the 4th of January and so far it has failed to appreciably recover.

So what's ahead for this most precious metal?

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MarketClub is growing so much that even Reuters was seen quoting us on 1/06/11:

"TECHNICAL BUYING

On charts, gold cut early losses, bouncing off lows at around $1,362 an ounce, a key support level in line with a series of lows set in December, said Adam Hewison, president of MarketClub.com.

Hewison said gold's bounce up from session lows signals that it has found support after falling this week.

'Every time when gold had gotten down to these levels, it's very close to making a reversal higher,' he said.

Gold has risen toward its record $1,430.95 an ounce level three times since November but failed each time."
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Take a few minutes and watch how this one little indicator has been catching the swings in gold incredibly well for the last several months. You may or may not be familiar with this little known profit maker, but if you're not yet using it you certainly want to learn how to profit from it in 2011.

This video will show you how.

As always all videos are free to watch and there are no registration requirements. If you would like to comment on this video please visit our blog at: http://club.ino.com/trading/

Wishing you a very successful and profitable 2011.

Adam Hewison
President of INO.com
Co-founder of MarketClub

14 thoughts on “Learn how this one little known technical indicator has been nailing the price swings in gold.

  1. Adam, thanks again. Fascinating video on Gold’ relationship to the Williams %R -14.
    I did have questions that did not seem to be addressed about how to enter and exit trades using the Williams %R (14) function as a confirming signal.

    Now there is no arguing with the success of the Trade Triangles, as the chart shows.
    However, the weekly “Trade Triangle” buy indicator @ $1,210.52 was way after the Williams %R had risen from below the -80 line (oversold), then rises above the -20 line (overbought?) and even appears to have headed back down, to go below -20 line again before the Weekly Trade Triangle was generated.
    I appreciate that we want trends to be confirmed and therefore we act in ways that do not try to catch the bottoms and tops, but I am at a loss as to how to read the signals from the Williams %R based on this otherwise informative video.

    For instance, as you also noted in the video about the previous “double-dip” in the W%R indicator, (it looks like it went up to -65ish as a minor false breakout), what exactly would you guys consider a confirmed “turn-up” signal using the W%R?
    The question arises from your comment that “once we see the turn-up” the gold market may go to higher levels. Surely a turn up to -65 appears risky. A turn, way-up to -20, appears a bit late.

    Personally, I think a dip below $1,362 support is inevitable (Gold now @ $1,369.10) before we get to new highs. But that’s just me.
    My questions for the forum are; What trading time-line does the W%R work for? and What is the consensus point (a la the W%R-#) that confirms a trend change?
    Any and all comments from wiser heads are appreciated.

  2. Current gold price is based on emergency measures. How long do you think we will be in an emergency?

  3. Adam: I sent this once previous but it has been hours an it hasn't shown up. With todays temporary drop in gold below $1362, and then rising from there, does the Williams %R indicator indicate we have seen a bottom? Or does the fact we broke $1362 change things?

    In a nutshell: Where do prices go from here?

    Thanks

    1. Hi Jeff,

      As soon as Adam is able to login to check on comments, he'll get back to you. Don't worry, your original question is still in our queue.

      Susan
      on behalf of the MarketClub Team

  4. Today (January 7)gold did go below the 1362 support level, however, it has come back to about 1370 (during the Friday market). After the video was posted, a Red Weekly Triangle was posted for gold, but not so for the ETF GLD. I do hold GLD in the Perfect "R" Portfolio. It is not often that there is a short-term turnaround in the Weekly Triangles. Should we expect a Red Weekly Triangle in GLD as well?

  5. Unless you attend the 'metals manipulation meetings" of those such as Goldman Sachs/JP Morgan, there is no way of knowing how/when the price of gold, or silver is going to be. But I do know, that you cant lose being in gold for the longer haul.
    Alan Greenspan admits massive illegal activities and major fraud by the bankers. WHy are the bankers getting billion dollar bonuses, when they should be in jail? Because they own DC, thats why. Here is Alan Greenspan, admitting banker fraud, as Ben Bernanke sits sweating in his chair wishing he could climb under a rock somewhere.
    http://www.youtube.com/watch?v=731G71Sahok

  6. Adam: With gold having temporarily broken support at $1362, does the Williams %R indicator still imply that gold has reached a point where it should rebound?

    1. Jeff,

      The break of the $1,362 level puts into question the the intermediate term trend. In the short-term I would not be surprised to see gold rally and fulfill the Williams %R indicator.

      All the best,
      Adam

  7. How come there is no weekly triangle change? We broke 1362 this morning before it rebounded a bit.

  8. Gold is a currency not a commodity as most people assume.QE makes it more valuable and it's getting harder to find.

  9. Gold down under $1360 /

    I have a feeling that Euro sell off is overdone , for a rebound along with gold when the US opens ?

Comments are closed.