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Michael Ballanger: Why technical analysis does not work for gold and silver
By Michael Ballanger
Thursday, June 2, 2016
I often include charts in my weekly missives for a number of reasons, but the truth of the matter is that they add a little color to what would normally be a pretty drab bombardment of opinion delivered via text.
By adding charts, it creates the illusion that I actually understand technical analysis (which I don't other than what I gleaned during a two-week training program in 1977 while in the employ of McLeod Young and Weir) and that it is useful in the forecasting of price trends in gold and silver over the long term.
Well, I have a secret to tell you-"T.A." (as it is called by the "in crowd") is useless. "Cup and handles," "hanging Chinamen, "engulfing knickers," "tombstone dojis" -- you can fire them all in the waste bin because that is precisely where they belong.
Last night I was reading a certain metals report where, sure enough, the author missed the top by a country mile, although he admitted it and apologized to his subscribers (which was truly admirable). I found it interesting that for him to get a clue to the next move in gold, he would have to "turn to the charts." So what I will do now is turn to my charts and demonstrate why charts are created by the bullion bank traders to trap the "chartists" (and their subscribers) into false senses of security. ...
... For the remainder of the commentary:
http://news.goldseek.com/GoldSeek/1464876000.php
Or:
http://www.24hgold.com/english/news-gold-silver-why-technical-analysis-d...
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