I was asked by a friend: "Which is stronger, silver-or-gold?"
The are both in up-trends. Both are consolidating. Both have a rising trading channel, both have a rising 89 day moving average, and both have a rising Ichimoku Cloud. But there are subtle differences. Silver-as pictured above, is WEAKER when you look at the three indicators on the top of the chart.. 1. (Top Indicator) RSI/ Stochastic is approaching over-sold (tied with-gold). 2. (Middle Indicator) Vortex, is NEGATIVE, red over green (gold-is stronger). 3. (Lower Indicator) Phase Energy, has fallen below the zero line (gold-is stronger, it is above the zero line).
So, based on this review, gold-is-stronger than-silver. I am positive on the outlook for silver-but I would rather take a position in-gold. In fact, the leverage in-GDX is about four times that of-GLD. The gold-miners stocks should continue to be strong: Some miners stocks that have been strong include HL-NEM-GORO. The gold-miners stocks are consolidating. A good entry point is when the RSI/ Stochastic bottoms out and starts back up- This event (RSI bottoming out), in conjunction with structure to the left on the chart (previous pivot points), are powerful buy signals.
Good luck to you. Don.
Comments
ChrisitneLcs
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can you share what are your indicator settings are?
649bruno
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Certainly. The indicator on the top of the page is RSI / Stochastic. When at the top it is over-bought. When at the bottom it is over-sold.
The top middle indicator is vortex and it is strong with green over red, weak when red over green.
The Top (bar-type) indicator measures the "phase energy", and this is the "Awesome Oscillator". If you read some of my other posts, I have a system called TRADE-MAP:
TRADE = 1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
.....MAP = 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
Thank you for your comment. Don.
ChrisitneLcs
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Thanks for your detailed presentation! It's really helpful!
Nice to learn from pro traders like you here.