Category Archives: Bitcoin

Below we outline our latest thoughts on Bitcoin. Continue reading →

The work of Edson Gould is useful primarily because we have the benefit of hindsight to confirm or reject the claims that have been made.  Of the most commonly used methods of Gould’s work has been the Speed Resistance Lines and Altimeter.  Both have worked exceptionally well when applied correctly. 

Of course, there have been times when we have applied these tools either at the wrong time or the wrong stock or index.  Surprisingly, as our work has shown, there have been few instances of this.  It has more to do with Gould’s work than anything that we’ve been able to add to the topic. 

This brings us to the topic of an approach that Gould has dubbed “Price Relationships” and “Time Relationships” method.  Gould outlines a mathematical formula on how to arrive at a projected PRICE and TIME of the top “bull move” in a market.  We have not attempted to utilize the TIME approach because it generally seems too exaggerated to make such a claim with a straight face.

Below we have included a chart from Gould’s November 12, 1979 projection for the Dow Jones Industrial Average.  Based on Gould’s work, it was estimated that the Dow Jones Industrial Average would climb to 3,000 by 1990.

The magnitude of this claim needs to be put in the proper context.  In the period from 1966 to 1979, the U.S. economy had mired through a period of stagnation.

The stock market was rangebound on a nominal basis and in real terms, experiencing the equivalent of a crash, in spite of the increasing number of buybacks by corporations.

Sentiment in the economy and the stock market wasn’t all that great as rising interest rates were at the forefront of every discussion.  Within this context, Gould proposed that the Dow Jones Industrial Average would somehow increase at least three times the current level by 1990.

The record, based on the work of Gould, speaks for itself. 

This brings us to the question of how did Gould achieve this assessment.  For now, we will present, for the first time, the number generated for the future price of Bitcoin based on Gould’s “Price Relationships” while avoiding the topic of Gould’s “Time Relationships.”  We’re hesitant to roll out a time estimate until we have worked out some of the kinks.

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