Gold's Four Hour Cycles and the True Strength Index

I have mostly completed my programming of gold's four hour cycle and can begin to show you what I have come up. 

The blue arrows spot the four hour cycle lows and the bubble provides a count of the number of 4 hour bars for that cycle. The plum colored arrows are located below each daily cycle low with a calculation of its length measured in days. The orange arrow locates the weekly cycle troughs. Above price are green dots where a cycle high is reached in right translated fashion. Red dots locate cycle tops that are left translated.


This second screen shot is just a closer look at our current weekly cycle. You will notice that within the past couple of daily cycles (plum arrows) there were 3 four hour cycles (blue arrows) of approximately 40 bars each. And, currently we are experiencing the third four hour cycle of the current daily cycle. At this magnification it is easier to see which four hour cycles were left/right translated as identified by the red/green dots.

Needless to say, I was rather surprised at the relative symmetry of these four hour cycles and hope that it yields some excellent short term trading opportunities.


Finally, the third screen shot adds the True Strength Index (TSI) indicator below price in the indicator panel. The familiar blue arrows spot the four hour cycle lows and the plum arrow spots the most recent daily cycle low.

On the True Strength Index (TSI) indicator itself, the green dots locate the trend line break BUY signals. The plum dots locate the trend line break SELL signals. The cyan colored arrow points to the positive divergence BUY signals. The magenta dots along the top spot the negative divergences between the indicator and price above and red dots (not seen in this example) spot the nose bleed SELL signals where the TSI reaches a reading in excess of +.80.


Several mornings ago I awoke to see what gold was doing and was really disappointed to see it drifting higher and higher from $1740 to $1750 to $1750 and nearing $1760. The reason I was disappointed was that I knew gold was on about the 37th 4 hour bar and should be dropping into its cycle low around bar 40. I thought to myself - oh wow - I did all this work and the software doesn't work after all. 


Then I get to school a couple hours later and take another peek. 


I could NOT believe my eyes. There was a red candle dropping gold $60 and right on schedule.  Are you kidding me?