You have it backwards. The intraday BPGDM needs to cross
above the 5-day ma. So, no signal yet. However, the
GDX:GLD ratio on the 60 min chart did break the down trend line on
Thursday. I took a long position.
rule #1 isn't as clear as it could be. but just think it
through: if we're in a downtrend (as we have been), the 5-day
average reflects the five previous days' prices (actually BPGDM
%'s), which will be higher than the current price. So that
can't be a buy signal; rather, it confirms we're in a down trend.
Only when the current price breaks above that average can we
say there is potentially a new up trend starting.
I just changed the working on 1. to say:
"
Buy Signals are generated by a
cross over the
5 day simple
MA." Does that help or not really? There was an "of" there
that did feel slightly off.
gdx on a buy now?
Posted by 8899 on 9th of Oct 2011 at 09:43 pm
i think that the $BPGDM 5 day ma crossed over the $BPGDM, i.e.,
5 day moving average = 15.33
$BPGDM = 13.33
buy signal when 5 day crosses over $BPGDM
i didn't receive an email on friday mentioning the buy signal
You have it backwards. The
Posted by frtaylor on 9th of Oct 2011 at 09:48 pm
You have it backwards. The intraday BPGDM needs to cross above the 5-day ma. So, no signal yet. However, the GDX:GLD ratio on the 60 min chart did break the down trend line on Thursday. I took a long position.
here are rules #1 & #2
Posted by 8899 on 9th of Oct 2011 at 09:57 pm
System Rules:
1.Buy Signals are generated by a crossover of the 5 day simple MA.
2. Sell Signals are generated by a cross below the 8 day simple MA.
i assumed that the crossover mentioned in #1 was that the 5 day crossed above the $BPGDM but i could be wrong...thanks fred for your insight...
rule #1 isn't as clear
Posted by frtaylor on 9th of Oct 2011 at 10:04 pm
rule #1 isn't as clear as it could be. but just think it through: if we're in a downtrend (as we have been), the 5-day average reflects the five previous days' prices (actually BPGDM %'s), which will be higher than the current price. So that can't be a buy signal; rather, it confirms we're in a down trend. Only when the current price breaks above that average can we say there is potentially a new up trend starting.
I just changed the working
Posted by tom on 9th of Oct 2011 at 10:24 pm
I just changed the working on 1. to say:
" Buy Signals are generated by a cross over the 5 day simple MA."
Does that help or not really? There was an "of" there that did feel slightly off.
Any comments on what to expect this morning?
Posted by garyl on 10th of Oct 2011 at 09:23 am
with gold at the top
Posted by frtaylor on 10th of Oct 2011 at 09:45 am
with gold at the top of the potential bear flag, I sold my GDX position at 56.35. I entered last Thursday at 55.35 or so. quick trade.
Well, GDX looks like it
Posted by frtaylor on 10th of Oct 2011 at 11:40 am
Well, GDX looks like it will go on a buy signal today - BPGDM has crossed above the 5-day.