Suppose I am a forex trader who trades both gold and oil among others. I am aware that
gold is now rising and oil has already risen. Should I sell out of oil and buy gold? Here I
use TradingView tools to give guidance to the best approach.
On the daily chart, I have dressed out the chart with a long anchored VWAP and its deviation
lines along with the price momentum oscillator and the ZL MACD. The ratio is descending
from a double top in March and May and trending down through the upper VWAP lines.
My analysis is that gold will continue to fall relative to oil until a potential bounce off
the mean VWAP.
My analysis is that the ratio will drop for a bit. If I need cash out of my positions. I should sell
gold. If I have cash to deploy into my positions, I shoudl buy more oil. Once the ratio bounces
if in fact it does on watch. I should do the opposite.
This idea I believe demonstrates the power of TV tools in informing a trader towards
high value decisions in trading.
gold is now rising and oil has already risen. Should I sell out of oil and buy gold? Here I
use TradingView tools to give guidance to the best approach.
On the daily chart, I have dressed out the chart with a long anchored VWAP and its deviation
lines along with the price momentum oscillator and the ZL MACD. The ratio is descending
from a double top in March and May and trending down through the upper VWAP lines.
My analysis is that gold will continue to fall relative to oil until a potential bounce off
the mean VWAP.
My analysis is that the ratio will drop for a bit. If I need cash out of my positions. I should sell
gold. If I have cash to deploy into my positions, I shoudl buy more oil. Once the ratio bounces
if in fact it does on watch. I should do the opposite.
This idea I believe demonstrates the power of TV tools in informing a trader towards
high value decisions in trading.
Note
Ratio bounced up from VWAP. Gold is a buy and oil a sell.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.