here is one of my (simpler) approaches to Trading Gold....never published here before ....
so have it as a present as I think it will be very very useful as Gold fires up !
open up this indicator and lay it on the XAU/USD chart
whenever the Violet line gets above or below all the other lines - trade it !
I use 20ma as a default like my standard FXcorrelator and thats a 20 sma on the XAU gold chart itself....the 2 bold lines will always crossover where the chart crosses the 20 sma if you keep the same ma setting.....
this is Gold priced relatively to the other currencies.......when it gets above them all then the market is deeming to be losing faith in paper money and moving away from Fiat currencies - and vice versa for the other direction traded
the Green line is the USD .....Ideally I would like to see the USD diverging and falling
as the Violet (Gold) line goes above all the lines re a signal ...and vice versa
research Gold to see why i like this as a strategy....simple relative strength applications to trading
Thank you for this wonderful idea. However, my Gold chart shows both green and violet lines going exactly together rather than diverging in all timeframes.
Could you please check this out? My symbol for gold is GOLD.
Well, here is a slight modification of the indicator, which will work on any symbol of gold - just attach it to the chart.
As a plus, it detects the current symbol on the chart and will work with other instruments as well such as Silver, Bonds etc.