I think we won't fall back below $1500 for a while. Depends what the score card is in the Gulf. If all quiet in the next fortnight may just settle down but my money is on Trump doing more Trump stuff
2020 Collapse
- Thread starter TreasureHunter
- Start date
TreasureHunter
Well-Known Member
Do you use a good/reliable tool for gold trading volumes?
I'm interested in comparing price with volumes.
TreasureHunter
Well-Known Member
Spot on, you're right. It's worrying. Gold might not fall below 1,500 $, but it could take some "breathing time".
Unless the volumes are low. Speculation drives the market, not stacking or saving.
TreasureHunter
Well-Known Member
Speculation is the primary force on the market anyway. But do you really think it will dip now?
It's hard, not only because you want the best timing, but because dealers are either out of gold (or the lie about it) or, there's a shortage (it's being overbought). This happened in December and early January.
Only way to effectively buy the dip is via unallocated and then constantly convert to physical to prevent major loss.
TreasureHunter
Well-Known Member
Thanks!
In fact, I used a few years ago, just lost it... the internet is such a vast chaos!
By checking the charts, I'd pay attention to the RSI (top), which normally shows whether something is over- or underbought:
in this situation it looks like gold is indeed "a bit" overbought.
Or, would you use a different indicator?
I want to determine the relationship between volume and price.
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B
Black and red bars across the X horizontal axis indicate volume. Can compare price movements on days of high volume Vs low volume and also use RSI (which I prefer). I'm no analyst but I'd wager it's looking over bought for the exact reasons I stated above, low volume of sell orders got picked up quickly by buyers. Either spot will fall as volume increases or we will see buy volume increase if Iran follows through on threats.
Thanks!
In fact, I used a few years ago, just lost it... the internet is such a vast chaos!
By checking the charts, I'd pay attention to the RSI (top), which normally shows whether something is over- or underbought:
in this situation it looks like gold is indeed "a bit" overbought.
Or, would you use a different indicator?
I want to determine the relationship between volume and price.
Black and red bars across the X horizontal axis indicate volume. Can compare price movements on days of high volume Vs low volume and also use RSI (which I prefer). I'm no analyst but I'd wager it's looking over bought for the exact reasons I stated above, low volume of sell orders got picked up quickly by buyers. Either spot will fall as volume increases or we will see buy volume increase if Iran follows through on threats.
I don't use RSI in my trading indicators. MACD has made me a tonne of money, combined with other indicators.Thanks!
In fact, I used a few years ago, just lost it... the internet is such a vast chaos!
By checking the charts, I'd pay attention to the RSI (top), which normally shows whether something is over- or underbought:
in this situation it looks like gold is indeed "a bit" overbought.
Or, would you use a different indicator?
I want to determine the relationship between volume and price.
Do you have a basic run through/tutorial available anywhere?
Let me get back to you in the morning, I'll make my own simple tute on how I use it.
Much appreciated
madaw1
Well-Known Member
This is correct as far as trading analysis is concerned-but in case of gold I'would'n be so sure-news plays more important role/especially now/ than trading analysis. Even RSI is overbought ,if something will happen/war will starts-hopping not/the gold will go up. That's my 2 cents...Thanks!
In fact, I used a few years ago, just lost it... the internet is such a vast chaos!
By checking the charts, I'd pay attention to the RSI (top), which normally shows whether something is over- or underbought:
in this situation it looks like gold is indeed "a bit" overbought.
Or, would you use a different indicator?
I want to determine the relationship between volume and price.
TreasureHunter
Well-Known Member
Volume is going up. It's just the beginning of January. I think gold's price could keep rising and then we'll see a major correction.
Not sure if this is a good time to buy:
1) if it keeps going up to 1,600-1,700 $ and won't correct below 1,500 $, then this might be a good opportunity
2) if it starts dipping now, then it's rather unusual for the beginning of the year... but then it's not a good time to buy now...
Yes, the Iran crisis is a major factor and also: massive physical buying going on in Germany.
For some reason the mainstream media is now pumping the "crisis ain't comin' after all"-type distraction. I don't know how come/what happened, did the wind change its direction?
Problems regarding China, slowdown, QE in the USA and Deutsche Bank-Euro will be dumped on us later on. After all, we're only 5 days into 2020!
Back to the original question: is this good timing or not?
TreasureHunter
Well-Known Member
Overbought based on what? RSI? Or, considering the fact that "it's about time for a correction"?
@wrcmad is probably one of the more knowledgable blokes to comment on charts, but if you look at these two links, you'll see that they're quite bullish on gold in the short, medium and long term and silver in the short and intermediate term based upon the overall analysis of the the chart indicators. Also the price is above the 4 EMAs that are tracked on the two charts.
http://www.stockta.com/cgi-bin/analysis.pl?symb=GOLDGold
Silver
As far as volume and price there's a short explanation http://www.stockta.com/cgi-bin/school.pl?page=fib#confluencehere using a thing called the ABCs.
I haven't bothered trying to learn it, I just check these two charts frequently.
madaw1
Well-Known Member
I think,that any market is these days more manipulated than 20-30 years ago. I'm trading more news these days and I found it quite successful comparing with charts.
Yep, when you look at the charts using TA you’re really just doing a behavioural analysis of the market.