ALERT: Weekly "Trade Triangle" Flashes a Sell Signal On Gold

Posted on by The INO.com Team

Attention all MarketClub Members:

A Weekly "Trade Triangle" flashed a sell signal on long positions and entry signal on short positions in spot gold this morning at $1,086.00. The market is currently trading at $1,086.00. Please use money management stops and be aware of the risks involved.

17 thoughts on “ALERT: Weekly "Trade Triangle" Flashes a Sell Signal On Gold”

  1. Thanks Lindsay- Another question on trade triangles that would seem rational. If OIl is trading at -60 score, would the score be different whether oil was moving from a negative trend vs. a positive trend with both possible crossing -60 at some point? So, if oil was at -100 and is now at -60, I would call that a positive trend within the trend, vs. the move from +100 to -60 which is a negative trend....or is there more to the way trade triangles are calculated that I am describing?? Bottom line, is there any validity to trending the score over time, vs the absolute score??

    1. Hi Jim,

      So I completely get what you're saying now... should I follow the score to determine fluctuations in trend, or should I look at the score as a big picture?

      Both... the reason I say that is because your technique for using the Chart Analysis Score should be based on your trading type and goals, and also that multiple Chart Analysis Scores can be made from various market happens. Although many score scenarios are unlikely... they can occur, so looking at the movement of the scores can be be tricky.

      Middle range scores are very tricky as the total score is the sum of the major trend scores. For example, if three of the five trending criteria are pointing in a positive direction, then the score will be the positive sum of those scores. A -60 could easier be represented in a few ways: 1) intraday negative, daily positive, 20 day negative, week positive, month negative... 2) intraday positive, daily negative, 20 day negative, weekly negative, monthly positive.

      You could however track the decline of a +100/-100. Odds are the score would fall +100, +90, +75, +/- 55, etc. Depending on your trading type this way could be productive.

      Looking at the score as a big picture is useful because this score tells you 5 important things about the market you are looking at: 1) What is happening to price movement intraday, 2) What is happening to the price in comparison to the last three days, 3) Is the current price above or below a 5 hour moving average, 4) What is happening to the price in comparison to the last three weeks, 5) What is happening to the price in comparison to the last three months? Again, some of these timing indictors may not be important depending on your trading type.

      Jim, the only way to know which way will benefit you is to define your trading goals and your style. Then you can find the best way to use the scores.

      Give our Support Team a call and I'm sure they can help you further examine the functional uses of the Chart Analysis Score.

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

  2. Hey Crude oil Trader, What does this mean for Oil as well since they are fairly both dependent on the USD?

    1. Hi Jim,

      I thought I would give you a look at the Chart Analysis Score for Crude Oil. Right now this market is moving in a sideways direction, making trend following very difficult. Right now our daily and weekly "Trade Triangles" are in corresponding down directions suggesting a short positions, however keep in mind this sideways move we're seeing and use proper money management.

      CRUDE OIL Feb 2010 (E) (NYMEX:CL.G10.E)

      Smart Scan Chart Analysis shows the current downward trend is at a crossroads and has possibly ended. Look for choppy trading action in the nearterm Very Weak Downtrend with very tight stops.
      Based on a pre-defined weighted trend formula for chart analysis, CL.G10.E scored -60 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

      If you have any other questions please contact our Support Team by calling 1-800-538-7424 or by emailing

      su*****@in*.com











      .

      Best Wishes,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

  3. Trade triangles work great, but if you used some of the other analytical tools, you could have gotten out two weeks ago. I suspect -- but I'm not certain -- that the same goes with getting back in; in other words, the trade triangles lag actual turnarounds...but better safe than sorry.

  4. Thanks. Got out of GLD for the time being, and will watch for your trade triangle to get back in. I'm also hanging on to physical though.

  6. Where do you see gold going down to? I hold a long position in Hecla Mining (HL) and was wondering if I should bail out on the stock.

  7. Can the ETF DZZ be used to short the gold market? Would I sell the DZZ when gold gets a weekly buy signal?

    1. Barb,

      I am not that familiar with DZZ. However, if it is an inverse of the gold market, you could trade this using the "Trade Triangles" that are directly issued on the DZZ chart, or you could hypothetically reverse the suggested positions for Gold (if the there was a good inverse correlation).

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

  8. I have have noticed that a lot of inverse etfs have given weekly green triangles in the last 2 days.

    Will comment on this as well as any weekly red triangle signals on the major indices and the major indices etfs?

  9. A timely alert, for sure.

    I'm holding physical gold but backstopping with puts, which are working quite well. Still think there will be a resurgence of interest in gold when, not if, the greenback falters. Interesting times!

  10. hello adam

    you used to send us some short vedios from time to time on gold and other currencies and commodities, they were educative and gives use some hints what is going in the market,lately and actully since october i didnt recieve any of these.

    thank you, hope to hear from you soon.

    rached bilal tamim

    1. Rached,

      I'm not sure we you are not receiving these video links as they come out. I will tell you that with Adam away for a little over a month, he has not had an opportunity to put out any education material, however he's back in the office and going crazy with analysis.

      Make sure you are signed-up for the Blog Alerts. Each time there is a post/video, you will receive an email with an hour.

      You can find this sign-up box at the top right hand corner of the blog home page @ http://club.ino.com/trading/?br12110.

      If you have any other questions please contact our Support Team by calling 1-800-538-7424 or by emailing

      su*****@in*.com











      .

      Best Wishes,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

  12. looks like you are out 1,000 per contract already, not a great trader. did you short when over 1200?

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