Loading ...Gold 20 Month EMA
Some members were discussing the merits of using this simple metric for being on the right side of the trade
Lets review
This is a monthly moving average. It is NOT for traders. However IF you simply want to know as an Investor when to be IN Gold and When to be OUT this is your Baby
Round numbers
IN at 300 ( 2001)…out at 800 ( 2008) ….$500 profit
then back in at 800 ( during the Financial crisis of 08)…OUT at 1600 (2011)…$800 Profit
In at 1200 (2016)…out at 1200 ( 2016). Sitting in cash awaiting a retest from below..YOU DIDNT LOSE ANY MONEY
IF the retest holds resistance ( as I expect).. ie price does not exceed the 20 Month EMA …stay in cash
IF THE PRICES EXCEEDS …IT WILL STILL BE ABOUT $1200 …AND YOU DIDNT MISS A THING !
FOR CONSERVATIVE TRADERS THIS IS IT !
Being the armature that I am, I cant disagree. Another member and I was just discussing this yesterday based on your earlier posting of this same chart. Another chart that really seems to hit the nail on the head was the one Eagle posted here https://goldtadise.com/?p=388718#comments showing the February and August crossings of the 13 and the 34 EMA. Im thinking about duck taping it across my forehead.
LOL OPTIONAL
KEEP EYES OPEN AND KEEP LEARNING
NOTHING IS 100% OF COURSE BUT YOU WILL FIND SOME INDICATORS IN EACH MARKET THAT WORK BEST FOR YOUR PARTICULAR RISK TOLERANCE AND TIME HORIZION