Elder Interpretation on Weekly Gold - Backup required!

boydd_uk

Junior member
11 0
So in my continuation of trying to understand what the Elder method actually is I give my interpretation of weekly gold graph. I'm hoping that someone using Elder will either back up this view or let me know where I'm going wrong.

I attached a graph with the usually Elder stuff: 2 EMA, 13, 26. Simple Channels, MACDH and Lines.

I'm using the Weekly as my first Screen. According to Elder - "apply trend indicators and make strategic decision on whether to go long, short or stand aside". The EMAs are showing a clear uptrend as far as I can see and I've added trend and support lines to make this clear in my head. So as far as EMAs go - it's Up.

However, MACD lines are also a trend indicator and these bad boys have just crossed at the right edge of the graph. hmm Down?

Wait for it there's more! MACDH seems to show a bearish divergence between the Feb peak with a MACDH of around 19 and the recent peak of Dec 4 MACH of around 14.5.

Gold has moved back to it's 13 bar EMA and seem to have bounced off that. So what should I feel about this graph?

To me it's a stand aside since I'm getting different signals. The MACDH divergence according to Elder is the most important but many this move has already occured with the share price moving down to it's 13 bar EMA? Perhaps now is the time to be long?

Anyone else like to have a go at interpreting this graph Elder style?
 

Attachments

  • goldweekly.jpg
    goldweekly.jpg
    428.4 KB · Views: 182

tomorton

Legendary member
8,142 1,222
Trouble with indicators is that if they all say the same thing its probably just a re-cycling of the same raw data: but if they say opposing things, which do you believe? I don;t use elder but the price action looks good for a long.
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock