December 17, 2011

$GLD (Gartley Pattern) - Long Entry for the Knife Catchers

@Patternprofits just posted a link by @GoldMoneyNews. So I thought I would take a another look at the $GLD chart. Check out this Link on Gold. Explaining Money supply will lead to accelerated inflation. 
           Anyway, back to the chart of the GLD. Begining in May, it formed a Gartley long entry. While, I did not notice this earlier, the ideal entry was at the .786 retracement of the X to A leg at 151.62. However, trading the pattern you might have wanted to round up to 152-153, thinking it wouldn't retrace perfectly. Stop placement would be determined by your risk tolerance. While trying to catch a falling knife, it is probably prudent to keep a fairly tight stop. 
          I will be keeping a close eye here to see if I can possibly get a second chance at this entry, my stop will be slightly under 150.00. 

I do love criticism, feel free!


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  2. While I'm a pattern guy at the core, I watch sentiment very closely when it comes to the metals. Sentiment has once again stretched to extremely bearish on Gold and sets the yellow metal up for another powerful thrust higher. In addition, according to Jason G. over at, dollar sentiment is over the top bullish. In my opinion, this is the combination that will ignite the next rally for Gold and perhaps bring in the public participation that will ultimately lead to the next big bubble. I fully expect the final parabolic move in Gold to dwarf anything we've seen in tech, oil, real estate, etc. so I want to be sure I'm on board. Would be great if this is the pattern that gets the next leg started. While so many are waiting on $1200-1400, the risk reward here is favorable and the chart is not likely to look "pretty" again to most until $1800+. If I'm going to catch that falling knife, I want to do it in this type of bull market while the negativity is at a peak. Thanks for sharing!

  3. Not a criticism but rather an observation, or two.
    The gartley is nicely drawn , but bear in mind that there is no AB=CD present and the second ratio at the D is not anything significant. Further down is the .618 of a larger swing from end of January 2011, so really the area of interest is 150 -151.5.

  4. Anon - Thanks. I think I see what you see. The .786 of the chart I was looking at pretty much falls right in line with yours at the .618?