Here is my 60 min GDX chart. The circled portion shows
where the GDX:GLD ratio crossed down. I, too, took a short at
60.00 and am holding this.
FWIW, I find that trading the GDX:GLD ratio in conjunction with
the buy/sell signal on the $BPGDX to work well. For example,
if the $BPGDX is on a sell, then I would be inclined to take all
shorts on the GDX:GLD ratio and avoid long trades. When the
$BPGDX is long, then I go long the GDX:GLD ratio cross and avoid
short trades.
Of course, there will be whipsaws, but I have found this to
be profitable.
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Here is my 60 min
GDX - 60 min sell signal
Posted by pebs on 4th of Apr 2011 at 04:18 pm
Here is my 60 min GDX chart. The circled portion shows where the GDX:GLD ratio crossed down. I, too, took a short at 60.00 and am holding this.
FWIW, I find that trading the GDX:GLD ratio in conjunction with the buy/sell signal on the $BPGDX to work well. For example, if the $BPGDX is on a sell, then I would be inclined to take all shorts on the GDX:GLD ratio and avoid long trades. When the $BPGDX is long, then I go long the GDX:GLD ratio cross and avoid short trades.
Of course, there will be whipsaws, but I have found this to be profitable.