fxprosilver - the Renko buy signal for GDX does not directly
relate to any such signal for Gold Bullion. While they are often
correlated, don't ever assume that a buy signal for one
index/sector applies to another.
Further, I suggest you review (in depth) the statistics and
comments Matt has posted regarding the GDX Renko system so you
understand that after very strong moves what to expect.
From Internet I found many people use BPI to trade both gold and
gold stocks. It worked very nicely. BPI is the best index used by
traders before 2000.
However, I am also use the following methods to double check my
point of view on the market trend:
1. Moving average;
2. Chart pattern
3. Renko system.
Currently BPI and Renko are in buy, but Moving average and Chart
pattern are in sell. Thus I am hesitating to take position.
This is my concern also
Gold stocks bottomed?
Posted by fxprosilver on 23rd of May 2012 at 08:28 am
This is my concern also gyzhao. Since I am mostly trading Gold spot, i wonder if GDX buy signal means buy signal for Gold Spot also?
I would assume that they correlate the same and it makes sense fro GDX to rise if gold rises. or am I missing smth here?
fxprosilver - the Renko buy
Posted by steve on 23rd of May 2012 at 08:54 am
fxprosilver - the Renko buy signal for GDX does not directly relate to any such signal for Gold Bullion. While they are often correlated, don't ever assume that a buy signal for one index/sector applies to another.
Further, I suggest you review (in depth) the statistics and comments Matt has posted regarding the GDX Renko system so you understand that after very strong moves what to expect.
http://breakpointtrades.com/blog/post/199889/#199952
Steve - Thank you, it
Posted by fxprosilver on 23rd of May 2012 at 09:44 am
Steve - Thank you, it really makes sense after reading Matt statistics. Ill stay away today..
Here is what I think
Posted by gyzhao on 23rd of May 2012 at 08:52 am
From Internet I found many people use BPI to trade both gold and gold stocks. It worked very nicely. BPI is the best index used by traders before 2000.
However, I am also use the following methods to double check my point of view on the market trend:
1. Moving average;
2. Chart pattern
3. Renko system.
Currently BPI and Renko are in buy, but Moving average and Chart pattern are in sell. Thus I am hesitating to take position.
What's bpi?
Posted by freddy123321 on 23rd of May 2012 at 09:04 am
What's bpi?
bullish percent index
Posted by mugsy on 23rd of May 2012 at 09:06 am
bullish percent index
Bullish Percent Index
Posted by tom on 23rd of May 2012 at 09:06 am
Bullish Percent Index