Gold Price Matter of Perspective

What do we see?

It’s not a rhetorical question. Do we see prices as we believe them to be or as they really are? It’s an important question because prices don’t care what we believe about them or anything else.

Price simply obeys the universal laws that also govern mathematics, physics and geometry.

Do prices, including the gold price,
move within a spherical torus?

When the gold price sat near $2,000.00 seemingly everyone said that it had to go higher. There was, some believed, no limit on how high it could go. Of course, the sky was the limit — just not in the way those who had something to sell told us it would be. Whether it was a little thing called gravity, or price moving within a spherical torus, the gold price has been largely in decline since 2011.

The geometry that, to me, seemed so useless back in high school, is proving to be very valuable today. Objects as simple as squares and triangles are more meaningful when looking at the gold price than you could ever imagine.

Geometry of Squaring Time and Price

The rather abstract idea of squaring time and price is less obscure than it sounds. Squaring time and price simply means that for every unit of price you have one unit of time — whether that time unit is in minutes, days, weeks, months, years, etc. The 45 degree angle and squares are the easiest way to ensure that price and time are squared on a chart.

It’s also vitally important when looking at any price chart that you always start with either high prices or low prices. Ideally you will use all-time high prices or all-time low prices as your starting point. Let the prices pick your starting point rather than subjectively picking one. What follows is several different perspectives on one small slice of the gold price chart, where the geometry of the square and 45 degree angle have been used to create a proper chart.

Sometimes it Pays to Look at the Same Chart From Many Different Perspectives

Take One

Gold price as falling wedge

The price picture for gold hasn’t exactly been bullish since 2011. It’s not necessarily bullish looking at the moment. However, this first chart represents a potentially bullish perspective, if not today, then possibly in the future. Why? What we’re looking at is a falling wedge.

The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge. In contrast to symmetrical triangles, which have no definitive slope and no bias, falling wedges definitely slope down and have a bullish bias. However, this bullish bias cannot be realized until a resistance breakout.

However, as you can see, this falling wedge could take several more years to complete, so we could face a continuation of the extended downtrend in the gold price.

Take Two

A somewhat symmetrical triangle forming in the gold price

If we view the gold price movement as a symmetrical triangle, then the gold price is in a continuation pattern. If you click the link above and scroll down toward the bottom of the page you will see a very good idea of what the price action would look like. If the gold price is indeed in a continuation pattern, then we would expect to see the price continue to decline, perhaps to below $800.00.

Take Three

Gold price channel

You’re probably starting to notice there are quite a few ways to look at the same gold price chart. Yet another way to view the gold price is through the perspective of a price channel. In this case we have a descending price channel as indicated by the descending green and blue lines. Price has made contact with both lines several times, so this is yet another valid way of looking at the price action.

Note: Another thing to consider when looking at any chart is the primary trend. That’s one of the basic reasons you look at either all-time pivot high or low prices whenever possible. They will tell you what the primary trend is, allow you to square price and time, and make it far easier to see a possible change in trend.

Far too often there are price charts and analysis that consist of very small slices of time, which are selectively chosen. This distorts the picture and clouds the larger perspective. It is essential to always make an analysis considering the primary trend. As a reader of any analysis, always consider it in the context of the larger trend.

Even if you are trading based on very short-term trends, it is still vital that you know what the primary trend is because it will allow you to bracket prices and understand when interim high and low price targets are met. Without this knowledge a trader is depending on luck to enter and exit the trade profitably. Luck is not something anyone should count on to make profitable trades.

Take Four

30, 37.5, 45 degree angles on the gold price chart

Another technique to look at price trends is to use angles, e.g., 30, 45, 60, 90 degrees, etc. On this chart we have used 45, 37.5 and 30 degrees. It is by no means perfect, but is has largely contained the price action of the past two years, including even a small portion of what occurred back in 2012.

W.D. Gann wrote this with regards to important changes in the trend of stocks:

Stocks make important changes of trend every 30, 60, [90], 120, 150, [180], 210, 240, [270], 330 and 360 days or degrees from any important top or bottom. These seasonal changes or monthly changes based on the beginning of any seasonal changes are important to watch for tops and bottoms.

Geometry, Platonic Solids and the Spherical Torus

I believe the reason numbers such as 30, 60, and 90 work owes a good deal to geometry. Obviously a circle is 360 degrees. Prices are influenced by the same forces that act on the planets, our sun, the galaxies, etc. If we could truly see what is happening to prices multi-dimensionally, that action would be taking place within a sphere — actually a spherical torus. If we were to represent it visually, that spherical torus would have other nested shapes within it — what are referred to as the Platonic Solids. These solids are actually just representations of vibrational energy that moves at different frequencies within the spherical torus.

Although it sounds very complex, and it is, we can gain an understanding of how price works in multiple dimensions. Understanding this will aid us in understanding exactly how the price mechanism works and when prices will change trend. My belief is that the spherical torus, and the forces within it, actually offer the best and most complete explanation of why bull markets occur. They also create the energy that leads the final blow-off top that ultimately turns the bull market into a bear.

Just looking at the revolving nested platonic solids in the video above gives us some idea of the complexity of the forces moving prices. Add to it the idea that these nested solids are within a spherical torus which is rotating in a fashion similar to how the Earth rotates, and the picture becomes even more complex.

Take Five

X marks the spot of the gold price crossroads

Drawing two different lines that begin at the halfway point of two different squares gives us a rough trend-line for the declining gold price, as well as a potential ascending support line. Given that the primary trend for the gold price is down, it’s more probable that the ascending support line will be broken than hold for any length of time. Still, it is valuable to have the support line on the chart as it provides a way to test and confirm the primary trend.

The gold price has been oscillating right at the point where the trend-line and ascending support lines cross. It would not be too surprising if this type of price action continued for a while longer until price decisively breaks either higher or lower.

Conclusion

As we have examined together, the gold price can be examined from many different perspectives, even if we use the same exact chart. However, some people can’t or won’t view price charts from various perspectives because they are unwilling to let go of their biases.

The main points of this article can be summarized as follows:

We should always be aware of the all-time high and low prices whether creating or reading a price chart

Knowing the all-time high and / or all-time low price allows us to properly create a chart utilizing 45 degree angles, squares and other geometrical shapes that will allow us to determine when the primary trend is about to change

Using either the all-time high or all-time low to build a price chart around allows us to square time and price, utilize principles of geometry to interpret price action, and create trend-lines and support and resistance lines that do not rely on bias or guessing

A good practice when reading price charts is to attempt to view the price from as many different perspectives as possible while, at the same time, keeping in mind the primary trend

Price is governed by the same universal laws behind mathematics, physics and geometry

Price action occurs within energetic fields which can be represented by nested Platonic Solids

In turn, those nested Platonic Solids are nested within a spherical torus which is rotating in a manner somewhat similar to how the Earth does

While the forces governing price movement are obviously complex, understanding them is within our grasp if we apply ourselves to studying and understanding them fully

The gold price remains within a primary downtrend

Through constructing and using proper charts, which rely on principles of geometry, we will be able to clearly see when gold’s primary price trend changes

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