Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

GDX/Gold Ratio chart/Silverbear *PIC*

Now that you've jogged my mind I thought I should 'update' this GDX/GLD Ratio chart that shows the buy and sell signals for GDX. I originally showing a falling Wedge pattern with the upper line presently dotted. That was not correct. When I was posting the bearish Gold chart double top with negative divergences and selling off I noticed price on the GDX/GLD broke out over that dotted line signalling a buy signal for GDX. No way that was possible. So looking at the chart again 'without bias' I recalled the rule for drawing channels. That rule says to use the line that is tagged at least 3 times to clone the other channel line from. So doing this the breakout rally high over the dotted incorrect falling Wedge lined up perfectly with the cloned line off the correct lower line that had been tagged 3 times. So here is the perfect falling channel still intact. A tag of the lower line would be a buy signal for the GDX. And I suppose a breakout over the upper line would also be a buy signal. Hopefully the ratio chart will fall to the lower line for a cheaper price on GDX and a repeat of previous signals. See how the Gold stocks sold off today to the bottom of the day's range even with a strong Gold market. Definitely worth paying attention to this chart. I could post it with a Stockchart's chart in pretty colors but this Qcharts chart does make the point in a more no nonsense fashion...........

Messages In This Thread

GDX/Gold Ratio chart/Silverbear *PIC*
Re: GDX/Gold Ratio chart/Silverbear