Queen Gold Changes Horses In 2014
By Stewart Thomson, Gold Seek:
1. As the year 2013 comes to a close, I think it’s wise to review some longer term charts. Please click here now. That’s a weekly gold chart, and there’s what I would term a “commodity-style” double bottom pattern in play.
2. Commodity markets can create valid patterns that don’t quite meet the strict requirements of the Edwards and Magee handbook on technical analysis.
3. Technical rules should be applied more loosely to commodity charts, because the use of leverage can distort price patterns.
4. In the case of this weekly gold chart, the time period between the first bottom and the second potential bottom is a little bit too long, but I think the shape of the pattern makes it valid.
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