A reader was interested in seeing how the True Strength Index (TSI) indicator behaved during the time period of the great 1980 gold parabola and this post will provide some charts with that answer. I also am posting a chart I made a couple days ago which includes, in clear detail, how the US Dollar behaved just preceding the final leg of the great gold parabola in '79/'80.
This first chart presents the '79/80 chart with the TSI indicator in the lower panel. I have drawn in the TSI buy and sell signals and identified the dates that correspond to our present 2011 daily cycle.
This third chart is a collage showing the 1979 US Dollar, 1979 Gold and 2011 Gold.
The 2011 Gold chart, while blue, is the actual data as of a couple days ago. The purple line is a future projection based on exactly replicating the '79/`80 parabolic. I did this by aligning the two charts (as above) then adding to the 2011 chart the same percent gain/loss achieved in '79/`80 on a day to day basis.
I have also done the same study with silver and using the same technique of projecting future price. Just for giggles, here is what that looks like.