Symmetry, Signs & Signals

 

Gold Futures

Symmetry in markets is always interesting from the standpoint of harmonics. Does it work?

From highs to lows, the last 3 gold futures downtrend cycles had these minus results from highs to lows.

3/8   to 3/29 = 21 days - 190.5 pts

4/18 to 5/16 = 28 days - 192.0 pts

6/13 to 7/21 = 37 days - 204.1 pts (avg of first 3 is - 195.5 pts)

8/10 to 9/16 = 37 days - 162.7 pts (32.3 pts away from average of prior 3)

Signs - First 3 Downtrends

Length of downtrend days (on the first 3) increased from 21 to 37 with an average of 28.6 days. The minus points increased from - 190 to - 204 

Based on the rate of progression, does that mean we are mere days away and a minimum 32.3 pts away from a significant low from which a new uptrend will develop?

Signal Conclusion

The answer is no!

Symmetry in markets occasionally occurs but does not work consistently longer term. Just when one thinks they have it figured out and extrapolated results into the future, the dynamics change to a different outcome.

The key to success is in time frame trends. Gold is in a downtrend and a positive daily trend is not yet present. While the risk/reward prospects and other indicators may be strongly suggestive for a significant low to occur shortly, it simply is not there yet. 

In the words of the Old Prospector, "Sit still and let the numbers come to you." 

This is the "unemotional" mathematical approach alluded to by others. 

9/20/22 - Trader Garrett