On Forex should I buy stop oil or stop gold instead?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.
