Updated: Jun 5
Our time and price indicators were suggesting a top in gold near the $1790 mark. As a consequence, I initiated some short positions in gold to position me for a pull back in price.
I wrote about the resistance in gold at $1790 in my gold report and that a sell off from there was likely. If the pull back in gold is decent, it really should see the $1660 level tested, but possibly $1620 as the chart below shows. The $1620 price level is actually a strong price support point and would still represent gold being in a strong bull market even if prices moved back to those levels.
I outline where I think gold is headed for the rest of the year in my Special Edition Gold Report which is available on the Shop page.
Now, I'm not showing you my gold trades to brag or to sell a report. But I do want to highlight that I am one of the few "Gann experts" out there that puts their money where their mouth is and actually trade my forecasts (and make good money from them too).
I will now implement my "break even" rule to cover my short trade on gold and leaving some open positions to make this a risk free trade. Of all the techniques I describe in my Trading with the Time Factor books, I think it is the "break even" rule which is the most valuable. It will save you thousands and thousands of dollars and make you a much more profitable and consistent trader. Those of you who already have the Time Factor books should go back and revisit that rule.
Over the next couple of days, I will be posting an article on a recent long trade I took on the Australian equity markets using intra-day timing techniques. We forecast the day of the low months in advance, and when it got closer to the date we used the Gann Square of 9 to predict the actual turning point within 2 minutes of it happening. I've previously written about that on this website.
Now, the point of my long ASX article won't be to show you how much money could've been made taking the trade, but rather, I want to provide an example of how you can get your forecast absolutely right (even to the minute), but still stuff up the trade due to trading psychology.
[Hint - I was long within an hour of the low, but got scared by the pull back and exited my long trade much too early, missing out on all the big run!! I'll tell you why in my next post.]
Until next time....