By: Ed Carlson | Tue, Nov 5, 2013
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In my September Commentaries I explained my expectation for no final low in gold prior 10/28/13. Based on "intervals of equidistance" (similar to cycles) I was confident that late October would see a turning point in gold and simply extrapolated the fact that because previous convergences of the two intervals (40 and 60-day) had always pointed to lows, 10/28/13 would see a low as well. It didn't... but it did mark a turning point in gold.

The decision of whether to expect a high or a low could have been made using the work of George Lindsay. A descending Middle Section is found in February/March of this year. Point E can be identified on 2/26/13 and counts 122 calendar days to the low on 6/28/13. Using a low (6/28/13) as the turning point always points to a high. The intra-day high on 10/29/13 was 123 days beyond the turning point.

Next week, I'll make a forecast for the low of the post 10/29/13 decline. See if you can identify a Middle Section forecast in the meantime. Hint: to forecast a low, the turning point must be a high.

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Ed Carlson

Author: Ed Carlson

Ed Carlson
Seattle Technical

Ed Carlson

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

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