attached is a XAU/USD chart, gold rally from 1595 to 1802 and then the rally fizzle, as shown in the dotted white triangle, the equilibrium is nearly completed and near saturation, most likely gold will move down when price break the EQ 1762.8-1714.5-1666.4.
Edit: attached is another chart, look to sell at around 1740.5, for day trading, special attention must be paid to smaller newer eq and balance point. Pre-market analysis is only for reference before trading begins. For e.g. in day trade, it is possible to buy and exit at 1741 although we have a bearish pre-market analysis.
Last edited by ecmf; December 11th, 2011 at 10:29 AM.
attached is a chart which show the effect of resonance in J-Chart, when price reach 1755.8 on 8 Dec 2011, it has the same image point as the previous 2 equilibrium. usually when this happens, resonance occur and there is a high change of reversal which happen in this case. On that day, many traders are lull into a false sense of security when price move past 1747.5, it is a bullish sign and it generate bullish signals in many indicators like RSI. But it is a bull trap it fell almost 52 dollars from 1755.8 to 1703.3, if buy at 1747.5, almost loss of 42 dollars.
J-Chart is not limited by time, it depends on your trading time frame and then we try to find the required equilibrium needed. Your trading time frame will dictate how big or small an equilibrium will be needed.
For e.g in in stock trading we do use larger equilibrium which may consist of 50 days or more.
It is much easier to trade stocks but i don't like to wait for the profit.
It is also easier to see the trend with bigger equilibrium
Hope this helps.
Update: attached is a chart for HTC, the chart shows about 200 days.
The bigger equilibrium shows clearly the trend and the forecast price. For stock, it usually take some time before forecast price is reached.
Last edited by ecmf; December 13th, 2011 at 11:45 AM.
attached is a chart for EURUSD, a temporary low is formed as seen in the eq 1.3858 - 1.3458 - 1.3058 and if it break, price will go down. The lowest significant BP is at 1.3186 and this is a strong indication that the price will go down further.
as posted in my last post, EUR/USD has indeed move down further and it has broken through 1.3000 as shown in the chart.
Update: Some thoughts on the fundamentals of euro, IMHO to solve the euro zone problem, the countries have to do the following : 1) devalue euro 2) sell their gold reserves. So it will not be a good idea now to buy both.
Last edited by ecmf; December 14th, 2011 at 09:30 AM.
Reason: added fundamentals analysis on euro