Golden Technical Analysis: Market Trend Forecast and Trading Strategy

Gold has always been one of the focus of investors' attention. The price fluctuations are affected by many factors, including economic data, geopolitical risks, and monetary policy.In this article, we will predict the trend of the gold market through technical analysis and propose corresponding trading strategies.

trend analysis

First, we need to analyze the trend of the gold market.Trends refers to a state of continuous rise or decline in prices for a period of time.By observing long -term, medium and short -term price trends, you can determine what the current market is in.

Long -term trends are usually confirmed by the weekly or monthly charts. Observing price fluctuations in these time frames can better grasp the general direction.Medium -term trends can be confirmed by daily charts, while short -term trends need to be observed with shorter cycle charts.

Support and resistance

Supporting and resistance is a very important concept in technical analysis.The supporting level refers to the stopping and starting to rebound after the price fell to a certain extent; while the resistance level refers to the stop rising and starting to fall after the price rises to a certain extent.

By identifying support and resistance, we can better formulate trading strategies.When the price is close to the support level, you can consider buying; when the price is close to the resistance level, you can consider selling or liquidation.

K -line shape

The K -line form is also one of the very important content in technical analysis.Different forms represent different meanings, and have high reference value when predicting the market trend.

For example, the "hammer head" form usually appears at the bottom of the decline, and implies that the reversal may occur; the "swallow" form implies that the current market may continue the original direction.

Moving average system

The moving average system is also one of the commonly used tools in technical analysis.The length of different cycles (such as 5 -day moving average, 10 -day moving average, 20 -day moving average, etc.) forms a complete system, which has high reference value when judging the direction of the market trend and strong weakness.

When the short -term moving average passes through the long -term moving average, it is called "golden fork", suggesting that the market may enter a state of rise; on the contrary, "dead fork" means that the market may enter a decline.

RSI indicator

RSI (14): This time RSI calculation uses the 14 -day calculation cycle

RSI = 100-100/(1+RS)

RS = the sum of the closing price within the day of N days is the sum of the positive number/N days within N days of the closing price is the sum of the negative number

In fact, the rate of average changes in the closing price of n units within time

RSI (14) = 100 - [100 ÷ (1+rs)]

in,

RS = Total number of closing prices within N day / total number of negatives within the closing price within N days

The scope of calculation results is 0 ~ 100.

When RSI> 70 explains super buy

When RSI <30 explains oversold

RSI DIVERGENCE:

RSI DIVERGENCE is relative to the stock KDJ, which means that there are differences between the two. If the stock is low and the RSI is not new low, then it constitutes a departure. If the stock is innovative and the RSI is not new, it also constitutes a departure.

SMA & EMA:

SMA: Simple Movement Tingu, SMA (N) = (C1+C2+CN)/N