Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Gold and the Ancient Sequence of Market Numbers

Commodities / Gold & Silver Jul 01, 2008 - 10:13 AM GMT

By: John_Needham

Commodities Best Financial Markets Analysis ArticlePassion and Precision
Most Gold traders are also Gold buffs. As the oldest form of money known to man and the first step past a basic bartering system in our civilization's development, Gold and Silver occupy a special place in our psyche, thus it is not surprising that many traders are passionate about the commodity they trade. Passion in all its forms is more pleasurable in anticipation than reality, a concept that gains acceptance with age, but there are times when anticipation will not suffice and precision is demanded. So it is with the world of trading.


Whether you are an investor looking to position a trade for the long pull or a trader seeking the swing points, that vital piece of information is the same. “Where is this going and where will it turn”. A more discriminating investor may be concerned with longer term trend signals. For investors as opposed to traders, reliability rather than immediacy is the key. Gold is one of the better markets to trade as it is a highly technical market that turns where it should if you know where to look. Today I want to share with you a unique view of support and resistance levels that work in all markets and for which Gold has a particular affinity.

Long term signals

The matrix that controls all markets is the Danielcode (DC). This is an ancient but relatively newly discovered sequence of market numbers that run from zero to infinity. They are created from market structures and therefore differ for each chart. They are dynamic in the sense that they are fractals of previous market moves. Whilst in theory there are unlimited sequences, in practice, markets use a handful of sequences again and again. For long term signals, we take the closest fit DC ratio and project it against an arc representing the dominant operating range. What we get is some squiggly lines that look like a Bollinger band or a Keltner Channel but are in fact DC binomials. This is a quarterly chart to show you how the binomials expand and contract with volatility.

To create market signals for investors as opposed to traders, we use monthly and weekly charts. The protocols that govern this methodology create a “count” from which we get buy and sell signals. We also get precise market data points at which the signal will fail so there is a high degree of rigor attached to this form of analysis. Our default assumption is that when both the weekly and monthly chart are on the same signal (buy or sell) the market is trending. When the signals are not in agreement we assume the market is correcting or consolidating.

DC Targets

Of more interest to most traders is the use of the DC support and resistance levels as potential targets for market moves. One of the unique and valuable features in the DC program is that bars in all time frames will complete their “recognition” of a Daniel number sequence by making their high/low within a small variance from the DC number. For Gold this variance is 3 points. We call bars that comply with these pre-conditions “setup” bars.

This is the weekly chart of Comex Gold leading up to the March high. We had two key numbers to consider but only one bar, that of the week ending 03/21/08 , met the conditions of a DC setup bar. In actuality the number from the daily chart was 1034.10 just 2 ticks from the ultimate high and this number was published for clients at the Danielcode Online and to a critical audience at an award winning US web magazine.

From the 17th March high the DC numbers projected these choices for the next major turn as shown on the chart below. 870 and 845 were both “must know” numbers. I have left some of the DC numbers on the following chart to show you how all of the significant turns in Gold have been made at or near the DC price targets.

I cannot show you all the detail here as this is a continuous chart covering four separate Comex contracts and for precise detail we need to look at each of the Comex charts. What I can tell you is that since the beginning of the year, every swing on the daily chart has been made at or within three points of the appropriate DC number except for one swing that came a little over four points away.

If we consider only those bars that are a valid Daniel number “setup” bar we discard over 80% of daily bars as potential turn points and an even higher percentage on the weekly chart.

The One More Thing

For 15 years I wondered why markets turned where they did. I knew about fibs and other range extension techniques and of course retracements, but nothing I could find in my searches gave me certainty or precision and so I searched until I found one more thing. The Danielcode is that “one more thing”. It is to the best of my knowledge the only totally new form of market analysis in a generation. It works on all markets in all time frames, which is why those that know say that markets are ruled by the Danielcode.

By creating a number sequence that markets know but others do not see, it not only adds that level of certainty that is missing from traditional analysis but because it is new and relatively unknown, it provides you with market information that others do not have. Whenever you know something that the market at large does not, you have an edge. And that is the difference between being with the crowd and being ahead. Markets know and react to these numbers. Sometimes the reaction is a mere vibration, sometimes it is a turn. We can use standard analytical tools to determine which reaction we are likely to get.

I have a plethora of testimonials that hail the Daniel number sequence as new, unique and brilliant. Personally I have found that any worthwhile journey must start with my own search and so I invite you to visit the Danielcode Online to begin your search of all the turning points for Gold. It is an exciting journey to see these secret market levels revealed.

By John Needham, The Daniel Code Report | July 2, 2008

See http://www.thedanielcode.co.uk for the full article and for more information about DC Numbers including a free two week trial .

John Needham is a Sydney Lawyer and Financial Consultant. He publishes The Danielcode Report and writes occasionally on other markets. He lives with his family in Australia and New Zealand .

John Needham Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Blobber
20 Jun 10, 07:11
DC reality

DC site censors and deletes any negative commentary in its forum from members who question its integrity and viability. The site is a misleading representation - no levels represented mean anything until the market has already moved to prove they are relevant. The DC site is the ultimate marketing sham representing it is derived from the Bible. Visitors would have no idea that questions and any negative comments have been deleted off the site to make it appear a "fanastic" trading site. Behind the site are a group of forum groupies who abuse any member who does not conform or praise the site and its owner. Religious bents have blinded many members who have no common sense to see behind the facade. If DC levels were so amazing then they could be called and listed in advance to ensure a profit. Instead the site has developed into a "how to manage stops to prevent losses"....now that development within the site does not flag or indicate that it represents an amazing discovery as to where markets turn in advance (as is the DC representation). Beware those who are not careful.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules