Market Phase Analysis
In Figure 4.12 we observe a symmetrical triangle acting as accumulation
within a larger consolidation zone on the daily chart of Gold. Although the
symmetrical triangle is intrinsically neutral in sentiment, it is very clear that the
symmetrical triangle pattern has bullish extrinsic bias, as it is located at a very
well established accumulation zone that has been tested by multiple bottoms.
In proximity also lies additional barrier support in the form of a downtrend
line. Notice the trend phase that ensues after a short return move to the triangle
breakout barrier.figure 4.11 Ascending Triangles as Accumulation on the Daily iShares Silver Trust
(SLV) Chart.
Courtesy of Stockcharts.comfigure 4.12 Nested Accumulations and Consolidations on the Daily Chart of Gold.
Courtesy of Stockcharts.com