Mikula Forecasting Company

MarketWarrior Off-Line Post #200

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Written by: Patrick Mikula CTA
P.O. Box 152672
Austin, TX 78715-2672
USA
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 1994-2008 by Patrick Mikula All Rights Reserved. (Please to not copy or foreword this article).
Post Date: 2008/Nov/25
Post: #200

Post Subjects
_____ 1.) Making a Swing Price Target For Gold
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1.) Making a Swing Price Target For Gold
When a market starts to make an upward, trend there will be a first correction downward in the uptrend. The first correction in an uptrend can be used as a measuring swing to project the swing top price targets on the way up. The chart below shows a composite chart for Gold futures. I have drawn arrows on this chart identifying the top and bottom of what looks to be the first correction down in a new uptrend for bold. Using this swing I have drawn the price lines that mark equal size price moves upward from the top of this first correction swing. These price lines are marked with the word "Extension". These prices levels are the price targets where we expect the price to reach. These are not price forecasts where tops should occur, there are prices targets. A price target is used as a minimum price level where you would place an order to automatically exit the market and take profits.