The price of gold is now in its fourth year of a bear market. This could prove to be a bad omen in the future. Since reaching a low on November 7th, gold has for the most part moved sideways with a slight upward bias.
You can clearly see on the chart that there is a big divergence that shows. When prices were making their lows, momentum was building for the market to bounce. Gold is now entering into a very exciting time window and is in tandem with the Trade Triangle technology. My research has indicated that the second and third quarters of the year are the best quarters to trade gold and make money in this market.
For every dollar you risked in trading during those quarters, you would've made 10 back in return. While the Trade Triangles do not predict where gold is headed, they do follow the trend whether that's on the upside or downside. At the moment, the major trend in gold is negative to sideways.
Should that occur, then I would want to be long gold. In the meantime, you should be on the sidelines based on the Trade Triangles. Here are the average quarterly results showing the quarterly dollar returns trading one futures contract of gold.
All of the signals for spot gold can be seen daily in the World Cup Portfolio that is available to you. The first quarter and fourth quarter of any year tend to be good, but they are the least productive in trading gold. Quarters two and three are without question the most productive and have shown historically over the past eight years to be the ones to focus on.
Q3 was even better than that and by far and away the best quarter of the year for gold. While it is not possible to guarantee returns like the ones above, and risks do play a part in any type of trading, the odds would seem to be overwhelmingly in your corner when you focus on the gold market in the Q2 and Q3.
Q1 average return over 7 years. Q2 average return over 7 years. All the results are based on trading one futures contract. A gold futures contract represents ounces of gold. So you can clearly see there could be a great opportunity coming up in the next two quarters.
The important element to remember is eventually the market will reward you. That has been the historical norm in the gold market. If you have any questions about this post, please do not hesitate to leave a comment below. For those of you who have already left comments on the blog, thank you for taking the time.
Well here's hoping you make up some from being dead wrong all the way down in this gold bear market since , the huge volume of bullish contributors you spotlighted was also a big clue as to your position. Thank you for yor feedback. Not sure I can totally agree with you as our Trade Triangle technolgy did very well in catching the down move.
All you have to do is put in the Trade Triangles, weekly and daily and do the math. I am sure that when you use the weekly TT for trend and the daily TT you will see that it made a positive return over time. Let's see how it works out. I feel that one has to be cautious in the end of 4th. What is your view Adam? Thanks for your feedback. Two things happen in Q4, tax selling and markets tend to get less liquid so caution is advised. Blueskies, Thank you for yor feedback.
Rainer, Thanks for your feedback. All the best, Adam.More...