Technical Analysis and Outlook Gold is trading laterally today following a quiet overnight session – currently up over $5.5 at $1292. As stated on Market Commentary-January 5, Friday (Jan 4) trading session, front-month Gold already has gotten to our Outer Gold Rally $1302 target - along with Inner Gold Rally $1296.
Every trading day this week could be described as a contracting price range defined by the completion of the Inner and Outer Gold Rally as traders an investors are posing themselves for pushing the market higher to the next Gold Rally $1322.
The downside risk is a new Mean Support $1285, Mean Support $1279 and Key Support $1267.50. (For the latest market talk, please see the site 'Market Commentary' tab - TradingSig_dot_com).
What's the difference between and an Inner and an Outer rally?
TradingSig
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@coolingla, Outer Rally/Dip is an overall market beginning and outcome (I.e., Global view). The inner Rally/Dip are market moves situated within 'Outer' movement. Think - move within the movement.
coolingla
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@TradingSig, Got it, thanks. I guess it's similar to Wave/Subwave in Elliot Wave theory.
TradingSig
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@coolingla, Far from it, I’ve never addressed the markets from an Elliott Wave, IMO, for me, the EW was too problematic to be useful - you will not notice an EW till it has already passed, which implies that your EW forecasts/projections are inclined to very subjective revision. And BTW you have to have very deep pockets to withstand the draw-downs.
So, the question is, what's the reasonable trading method to discover what the investor/trader wants to execute its buy or sell - Discover a mass of collecting prices and take each trade to the next level.
So, how did I solve this dilemma? Well, honestly, it was a mixture of hard work, intense study, and attending the entrepreneurial 'school of hard knocks.' Oddly, I come from a corporate and real-world university background working in Japan. And although I imagine the corporate world would be of things for me, I had this sincere desire to be a solopreneur.
In my early-forties, once I matured as a full-time solopreneur (the 'no turning back' kind of thing), I began to make my mark. After bombing out in more than several early efforts in trading the futures market, especially full-size S&P500 contract, out of sheer frustration, I ultimately chose to befriend and ask experienced floor traders in the Chicago Mercantile Exchange and Chicago Board of Trade what they look for to get in and out of a trade. Their responses surprised me, but they showed me what I needed to comprehend.
It is all 'Price action coupled with human behavior' stupid!