by Jon S. Strebler
Different numbers have been proffered as magic numbers by different cultures over the millennia. Three is such a nominee for its ability to represent three-dimensional entities such as rocks, trees, cars, and everything else that populates our conventional world. Three legs are the minimum number required for a sitting stool; there are three “times” (past, present, future); the virtues Faith, Hope and Charity; and of course we have the Holy Trinity. Similarly, three sides are the minimum for a two-dimensional figure with connecting sides, and that in turn defines a triangle, which leads us to some interesting chart patterns.
First up is a five-year chart of gold, denominated as we usually show it: in U.S. dollars. Gold’s downtrend is clear here (ignoring for now the false breakout a couple of months ago), defined by the maroon line that’s been heading lower for over two years. A possible bottom ... Log in or subscribe to continue reading.