You know that I pay a lot of attention to Reversals of Trend and to Retracements.  Reversals are easy enough to understand and to see on a chart; they occur when prices which have been trending either up or down suddenly stop going in that direction and do a fast turnaround and go in the [...]

The price of Gold marked its all-time High of $1228 per ounce on December 3, 2009.  Since that time, Gold fell sharply, beginning on December 4, as depicted by a tall black candlestick bar for that day.  From a “Wave 1 Down” Low on December 22, Gold retraced just over 50% of its initial decline, [...]

After a breathtaking decline from the heights near $1230 per ounce, an upside reversal in Gold is due.  The first chart shows two clear Candlestick Upside Reversal Warning Bars – a High-Wave Spinning Top followed by a Hammer, both of which appeared at the bottom of a clear downtrend.  The small white Candle represents overnight [...]

The Candlestick “Hammer” is a bullish Reversal pattern.  On November 27, 2009, a classic “Hammer” pattern emerged in the Dollar/Yen pair.  We promptly issued a notice to our Subscribers, wherein we predicted a substantial rise in the Dollar.
The proof is in the pudding.  Or is it “in the eating?”
The attached chart shows the result.  As [...]

Candlestick “Hanging Man” Plus Island Top Equals Price Decline
The Candlestick “Hanging Man” pattern occurs at the top of a long price ascent.  It is marked by a price bar which has a small “real body” at the top of the period’s price range.  The pattern is considered to be bearish, but it requires a lower [...]

Bearish Candlestick Pattern in Russell 2000 Index Foretells Decline in Prices
We have been waiting a long time for a top in the Great Rally of 2009, which represents neither a “recovery” nor a resumption of the old bull market.  Rather, it has been an upside correction of the bear market which began in October 2007. [...]

Candlestick “Doji” Reversal Pattern Makes Us Stop and Think
The Dow Industrials and the other major Indexes were up slightly today, including the NASDAQ Composite.  The Industrials appear to be faltering.  The Candlestick pattern in the NASDAQ causes us to stop and consider its implications.
This particular pattern is a “High-Wave Doji,” which we recognize as a [...]

Manias Come in Many Colors
In a past century, a particular Mania came in the colors of the Tulip: red and yellow, primarily.  One of them came in the color of the South Seas.  In 1929, one arrived in the color of paper, in the form of Stock Certificates.  In 2000 and 2007, the key colors [...]

A New Low in the Dollar Index is Good News for the U.S. Dollar
The Dollar Index compares the value of the U.S. Dollar with a “basket” of foreign currencies.  In overseas trading early on October 20, 2009, the Dollar Index made a new Low.  Assuming that one desires the value of the U.S. Dollar to [...]

We are operating on the assumption that the High of 9917.30 in the Dow Industrials on September 23 probably marked the top end of the Great Rally of 2009, and therefore was the top end of Primary Wave 2 Up and marked the start of Primary Wave 3 Down and a continuation of Cycle Wave [...]