Thread: Discuss Commodities and Stock Market Indices

Gold seems like replaying previous pullback shown the chart below. I am testing the following strategy for about six months. It's very effective in gold particularly 5M with FXCM 1:400 leverage account. The strategy based on the divergence (Regular, Hidden, Exaggerated). Divergence on the Stochastic, MACD Histogram and signal line is using for entry and exit. I use to take position on higher time frame (H4 and Daily) divergence. For quick profit I use 5M and 15M time frame divergence. With the help of fibonacci extension I am finding target in the system using ABCD pattern strategy taught by our famous friend Gregory McLeod Pip&Run show.

Thanks to the new invention 9 wave theory from Natureboy. It's really effective in last week bull market on my 30M and 1H chart along with elliotwaveprophet indicator from scentificforex.com. Yesterday Gold acts very strange. I have seen this rarely like gold immediately correcting bull of USDollar index.

200Day DMA is very crucial in Golds Bull market it bounced back sharply from it. As per nature boy theory 6th or 8th retracement wave in progress in my chart. May be I numbered wrong Like to hear from the Master..)


Try to open the image in New window to enlarge picture

Wish you all a good trade.

Shaiju

Any one can share if gold is on uptrend or downtrend on daily chart?

Originally Posted by Nature Boy

Hello traders
Yes the charts are better than crystal ball gazing but only if you have a PHD in Sign Language.

Cheers

Hi Natureboy, I'm a chartist as well and try to do some ew counts. I also believe that charts can tell the future because at the very least the insiders always know the news before it's out and they position accordingly. I like your charts and intuitively looking at them you seem right on. The 9 wave is an ew thing where 5 is impulse 7 is correction and 9 is impulse. However, following your charts I have some difficulty figuring out how you assign 0(wave begin). Could you help me out a bit? thanks..

Originally Posted by trexy123

Any one can share if gold is on uptrend or downtrend on daily chart?

I would say it's on DownTrend :-)

When looking into dailychart it's on corrective move, which shouldn't last $1780 ($1760 is the strong target. header and shoulder will form on daily chart in this level ). My profit levels are $1721, $1731 & $1755. Rest of the move I will watch carefully and go for Scalp

If it go above & close above $1805 I will go long. Current bearish target is $1395 :-) I believe gold rocket's fuel-station is there. Ofcource there would be some humps before reaching there..

wish you a good trade

GOLD N SILVER :: Both seems pretty like to break above their respective immediate resis.. Silver seems to be on a faster recovery mode here..

GL..

Originally Posted by vrshaiju

I would say it's on DownTrend :-)

When looking into dailychart it's on corrective move, which shouldn't last $1780 ($1760 is the strong target. header and shoulder will form on daily chart in this level ). My profit levels are $1721, $1731 & $1755. Rest of the move I will watch carefully and go for Scalp

If it go above & close above $1805 I will go long. Current bearish target is $1395 :-) I believe gold rocket's fuel-station is there. Ofcource there would be some humps before reaching there..

wish you a good trade

Good clear expression, many thanks. Is your long term estimate still over $2,000, say within a year or two max? Or you think it may never go that high?

When you get to "$1721, $1731 & $1755", what do you plan on doing, moving stops, or selling part holdings?

Dear Traders,

I would like to share the real pictures of Gold conception in India. Have a look at it. Our financial institutions are 100% sure gold price will go higher. They are inviting investments for doubling your account. To upgrade prestigious level prestigious parents are ready to go for loans to buy heavy gold for their daughter's marriage. Our gold resellers are looking for solutions to manage their crowded customers. Almighty need more gold to give wealthier life to their believers.

However Gold craftsman still struggling for their daily food.

We are anticipating about trend :-)

Happy Trade



Open the picture in new window to enlarge it.

Originally Posted by byways

Good clear expression, many thanks. Is your long term estimate still over $2,000, say within a year or two max? Or you think it may never go that high?

When you get to "$1721, $1731 & $1755", what do you plan on doing, moving stops, or selling part holdings?

byways,

I am not an expert to predict the market will go $2000 this year. I am concentrating only on gold and not other currency pairs or other metals. I am in process of developing a strategy for trading gold. Keep in mind that Gold's bull market is over $3000. I expect it will reach at least $2125 this year and correct immediately to $1800. I still don't believe in Gold bubble. When looking into gold's daily chart you can see that gold has formed almost a Half circle. Naturally it can't go more.. It need to fall to move higher other wise graph will go exceed 90 degree. So the corrective movement has to be expected in every high.

Normally I lock the investment in every crucial resistance. For example: If I am longing with $10 from the position of $1690, I will enter a short entry of $10 at 1721 that's my 1st target with the stop loss of $1725. I am sure the price will go down and comes back, if the trend is up. Once bouncing back I will take the profit of sell entry and observe the moment other wise I keep the sell entry till it get to the bottom. It's a little tedious task. Practicing myself to master in it. (A lock from $1703 brought almost $200 on Friday fall)

In my last six months experience I have noticed that the breaking of critical resistance will be at third or fourth attempt in 5M chart. it's all depends on the power or length of bull candle. There is a higher chance of breaking on initial attempt when the bull candle forms like a series of "ants". The power of these type of candles are very less. Once breaked it will take momentum like a rocket to go at least $10 difference from breaking level.

Gold is not only a precious metal and it measures the power of economy as well. So in future there would be a huge demand for this. We can only expect bulls in this metal. You won't get it on the current price in future. We are lucky to live with the gold at this price :-)

Brent daily

Gold daily

Originally Posted by vrshaiju

byways,


Gold is not only a precious metal and it measures the power of economy as well. So in future there would be a huge demand for this. We can only expect bulls in this metal. You won't get it on the current price in future. We are lucky to live with the gold at this price :-)

Why is gold a measure of the power of economy? In the late 90s and early 2000/2001, the economy was reportedly much better than what it is now, yet gold was dropping and eventually bottomed at the burst of the bubble. There are far too many debate as to the real role of gold and I don't want to get in there. But from a purely utilitarian point of view, gold's value is more of a matter of psychology and perception than real value generated from practical use.

I have always found it fascinating, why in these days and age, people still want to wear tons of yellow stuff on their body in India? The Chinese like gold too, but don't pile them on their body as decoration, and more as a traditional concept thousands years old, and too conspicuous gold jewellries are considered vulgar and bad taste. But why in India such gold-donning is still in vogue?

Originally Posted by trexy123

Any one can share if gold is on uptrend or downtrend on daily chart?

Posted charts earlier today as well. I'm bullish on this pair and expecting a move to 1840-55 soon enough...
here is weekly showing a nice bull channel still in play.. Last week dogi close is also indication for a higher move coming on it..
Immediate resis shown in previous post if breaks would create a domino effect..
Combining those charts with the current ones, you can fairly see the reason why I'm bullish on this pair...

GL...

I'm also bullish on OIL...
Currently on 8 hrs it is within a bull flag...

GL..

Originally Posted by Franosh

Why is gold a measure of the power of economy? In the late 90s and early 2000/2001, the economy was reportedly much better than what it is now, yet gold was dropping and eventually bottomed at the burst of the bubble. There are far too many debate as to the real role of gold and I don't want to get in there. But from a purely utilitarian point of view, gold's value is more of a matter of psychology and perception than real value generated from practical use.

Actually I am also looking for an answer this question. As far as I know paper currency value has some relation with gold value. In 1985 Indian Govt. decided to sell a potion of it's gold reserve. The result is Indian Rupee value came down from 8 to 35 against 1 US$ just in a week. Which means Indian rupee bulled against US$. Today 1US$ = 50INR. Now you can assume how gold reserve is related to economy. You have to pay more to buy things. American's and Europian's doesn't faced such situation yet. So every Indian's knows the value and importance of gold. We simply doesnot trust currency. That's why we are buying gold as different forms. That's why we are taking loans and buying gold as investment. Over time the gold will pay the loan automatically.

Originally Posted by Franosh

I have always found it fascinating, why in these days and age, people still want to wear tons of yellow stuff on their body in India? The Chinese like gold too, but don't pile them on their body as decoration, and more as a traditional concept thousands years old, and too conspicuous gold jewellries are considered vulgar and bad taste. But why in India such gold-donning is still in vogue?

Indian's doesn't wear such gold every day. The picture shows heavy gold but it's just for only a day for their wedding. In next day It will move to the Bank locker. We liquidise it when we need to purchase a home or any medical emergency (medical insurance companies are just came in). or buying a land or starting a business etc... As I said over time the investment multiplies. That's why even youngsters are interested to purchase yellow metal instead of saving currency. Currencies can be devaluated the lesson we already learned:-)

Originally Posted by stryker

Posted charts earlier today as well. I'm bullish on this pair and expecting a move to 1840-55 soon enough...
here is weekly showing a nice bull channel still in play.. Last week dogi close is also indication for a higher move coming on it..
Immediate resis shown in previous post if breaks would create a domino effect..
Combining those charts with the current ones, you can fairly see the reason why I'm bullish on this pair...

GL...

You are right... there is a bearish trap at 1840 - 1855 and 1880 - 1890. The bearish target in this level is too deep which I think practically not possible