Gold Technical Analysis: What You Need To Know

Of the many markets you can trade in, gold holds a special place in the heart of some traders and the bold can come out on top over a spread. The term gold technical analysis refers to the serious study of short and long-term gold prices, and if you are thinking of moving into precious metals trading, here are a few tips from the pros.

Gold Technical Analysis: What You Need To Know

Get Into Reverse Signals

Momentum indicators such as MACD, with a few oscillators like Stochastic, and RSI, are definitely on the menu if you want an edge, that is. There are so many buzzwords and acronyms used in trading circles and an hour or two a day swatting up on these will pay dividends.

Research The Trends

The complete history of gold value is available to anyone; get good with Google and you can find out how gold performed at any given period. As the pros say, ‘trends are your friends.’ While there are no certainties in gold trading, past performance is a guideline at the very least. Ask any of the reputable gold bullion Brisbane dealers or experts in your city about trends and they will happily confirm that studying trends is essential to be a successful trader.

Entry & Exit Points

Setting entry and exit points before trading protects your investment. Never forget to set the stop-loss point, otherwise, you could lose big time! If you have some trading experience, all the better; if not, you should connect with a gold bullion dealer, who has a lot of resources and can help you in many ways.

Create A Weekly Chart

One of the best tools to help you forecast trends in gold is charting. This is something that should become second nature, and this data set can be integrated into a wide range of software platforms to help you predict long trends.

Analytical Software

The 21st-century gold trader makes good use of pro analytical software and every little helps when trying to forecast long trends. You can access online databases to feed your algorithms. If you are a raw novice, we recommend a few months of pretending to trade; this will give you a chance to learn without risk and gain an in-depth knowledge of market practices.

The commitment of Traders (COT) Report

This is a weekly report issued by the Commodity Futures Trading Commission (CFTC) that helps to determine market sentiment. The report gives you long and short buys with commitments in 100-troy-ounce numbers. There are different categories: swap dealers, managed money, and retail trade. You should quickly acquaint yourself with the COT.

Forge A Connection With An Established Gold Bullion Dealer

Register with the best gold bullion dealer in your city, and you can access their huge library of resources, which is an essential step to becoming a trader. It might seem a bit daunting if you are new to trading and it should be understood that there is an element of risk with any form of trading.