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Gold Price in Three Grids

August 30, 2017 1 comment

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The gold price recently reacted lower after crossing in to the dual-resistance at 1319.29 to 1339.17.

But looking at the gold price, there are actually at least three useful price grids you could construct that would reveal different support and resistance levels.

The first grid would be constructed on our familiar decimal (base 10) number system and looks as follows:

8/8 – 1375

7/8 – 1359.37

6/8 – 1343.75

5/8 – 1328.12

4/8 – 1312.5

3/8 – 1296.87

2/8 – 1281.25

1/8 – 1265.62

0/8 – 1250

These levels are based on Murrey Math. At the present, price is between the 3/8 and 5/8 levels. Under Murrey Math, we should expect that while the gold price is between 1250 and 1375, that around 43% of that time would be spent between 1296.87 and 1328.12.

The 2/8 and 6/8 levels, depending on where the gold price is can act as support or resistance. 4/8 can also act as another support or resistance level. If price reaches extremes below 2/8 or above 6/8 price often returns back to those levels.

The decimal system / Murrey Math combination are something that I have been using for a while to analyze price. However, another useful way to look at price level is to use base 60 and a modified form of Murrey Math appropriate to it. There are at least two useful ways to do this.

First, you can use an idealized base 60 grid as follows:

5/5 – 1357.64

4/5 – 1341.73

3/5 – 1325.82

2/5 – 1309.92

1/5 – 1294.01

0/5 – 1278.11

In the above grid, dual-resistance is 1294.01 to 1309.92. If you have observed today’s gold price action, you might have noticed that around the 1309 level the price turned back. Given the dual-resistance between 1294.01 and 1309.92 this was not surprising.

The second grid is also base 60, but is customized based on the current gold price and looks like this:

5/5 – 1398.82

4/5 – 1378.93

3/5 – 1359.05

2/5 – 1339.17

1/5 – 1319.29

0/5 – 1299.41

Yesterday, the gold price turned lower after crossing above 1319.29 to near 1328 before ending the day at 1315. The idealized base 60 grid would not have caught that turn while the customized one did.

There are several significant points here:

  1. If you only think and do your analysis in decimal (base 10) you are going to miss many important turns because they are invisible to you;
  2. An idealized base 60 analysis will allow you to see levels and turns that base 10 won’t, but there are other turns and levels it will miss as well;
  3. A customized base 60 level constructed on current prices will reveal other important levels and turns that neither decimal (base 10) grids and analysis nor an idealized base 60 grid and analysis will catch

The number system you work with to analyze price is analogous to language. Language shapes thinking and puts a box around what your mind can think and see in many respects. Number systems do the same thing. Only viewing the world through the decimal system (base 10) limits your thinking and analysis. One way to see price movement with new eyes is to use another number system such as base 60 to reveal levels that the decimal system simply has no way to reveal.

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