Here is another example of stock price rallies in tandem with gold rally.
On 24 February 2016, the stock price broke above S-Trader Pivot Resistance with closing price of RMB24.41.
The price broke out with the following indications.
1) S-Trader Smart Money Index - Positive (Green Bar). This indicates strong support from Big Boys (Smart Money).
2) S-Trader Multi Months High Low - 1st 6-month High breakout.
3) S-Trader Volumetric - relatively High volume.
Thereafter, the stock price rallied with the latest closing price of RMB46.56 on 8 July 2016. A profit of RMB22.15 (+90.7%).
Chart Source :
1) Metastock
Gold price rebounds on early January 2016 from its bottom.
Similarly, ABX also rebounds around the same period.
Prior to that, ABX had been moving in the sideway market for certain periods, as shown in the chart below.
In side way market, the price action only able to hit 1-month High or Low several times. Despite breaking the 1-month High, the stock did not rally much.
The first breakthrough came on 7 January 2016 (point #1) with the following indications on S-Trader.
1) Price broke above the S-Trader Pivot Resistance
2) Price action hits 3-month High.
3) S-Trader Volumetric recorded relatively High volume action.
4) S-Trader Smart Money Index showed the Big Boys (Smart Money) supporting the price breakout.
However, the price action did not move any much further.
In fact, the price pullback but supported by S-Trader Pivot Support. At the same time, smart money still in the market supporting it (as shown by S-Trader Smart Money Index - green bar).
On 25 January 2016 (point #2), once again the price made another breakout with the similar indications on S-Trader but this time it hits 6-month High.
Chart Source :
1) goldprice.org
2) Metastock
Under Metastock's Expert Advisor, there is an interesting trading system which caught my attention. The trading system is known as "Profitunity - Bill Williams".
An example chart with Profitunity - Bill Williams trading system.
Notice those arrows on the chart which indicates the Fractals.
For more details on Fractals, click on the link below.
A Trader's Guide to Using Fractals
A quick glance on the fractal points, one could identify the tops and bottoms of the price movements. However, using the original Fractals presentation on metastock could make the task of analysis challenging for some users.
To make it more presentable, I have developed a custom indicators called "S-Trader Pivot Support" and "S-Trader Pivot Resistance".
An example chart with S-Trader Pivot Support and Resistance.
Basically, the S-Trader Pivot Support and Resistance indicators connect all the top and bottom Fractals accordingly forming sort of price movement channels.
With it, we could use it to identify price break out.
Chart Source :
1) Metastock
