November 27 2014
Gold and the long term favored price point
Due to the Thanksgiving Holiday in USA on Thursday, there is almost no action at all in gold. There really is no change from yesterday. Let’s take this opportunity to look at the long term channel lines of gold.
What is different from a channel line as opposed to other technical tools?
The most important factor is that the lines (for the most part) are set by the market price and not a random factor.
True a Channelist has to draw the lines but that is like a mechanic. If you have someone who knows not the guidelines for channel construction, (or vehicle diagnosis) you stand the chance of receiving irrelevant information. I think we can say it is one of the least ARBITRARY technical tools because the market (for the most part) sets the geometry for the channel lines.
If we really think about it, channel lines are nothing more than the “MOMEMTUM SLOPE” of a trend (be it down or up). The upper line being the maximum trajectory and the lower being the minimum. Another way to look at it’s like a Bollinger Band without humans picking the # of units in which to set the measurement.