When we talk about spot gold price we know that the price fluctuate every minute as investors did the bidding. But, can we anticipate the trend of the gold whether up or down? When to buy or sell? Trend or chart pattern reading needs a special set of skills. The skills require us to learn about technical analysis of gold (or other commodities) chart. |
| Candlesticks Chart |
When gold investors discuss about the market trend they do not simply say going up or down but instead they would say 'bullish' or 'bearish' trend. This technical terms are widely used in investment world. So, if we wish to be part of their world we need to learn their 'language'.
 |
| OHLC Chart |
I am not suggesting that we take investment as our major but at least know the basics such as type of charts - OHLC, candlesticks or line.
Chart: Gold market trend candlestick chart analyzed using Bollinger bands and MACD
- Bollinger bands to showing the volatility of the market
- MACD to show the momentum & trend of market
After understanding the gold chart, we now can see the market trend. To get more information, we need to analyze the chart. Tools designed by the experts comprises of complex formula which was simplified into user-friendly applications such as Fibonacci retracement, Bollinger bands, relative strength index or moving average. What is expected from us as end-users are only to choose the appropriate application(s) and interpret the results.
To summarize, if we intend to become gold investor we need to arm ourselves with adequate technical analysis knowledge to avoid losing instead of gaining profit from this potential investment.
Prepared by,
Wan Muhammad Yusri WA
PG00067660
wanyusri@gmail.com
012-8871702
No comments:
Post a Comment