Gold Uptrend Is Over, But Not In Downtrend

gold.uptrend

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The uptrend in gold has been broken, but that does not trigger an immediate short sale in anyone’s model. Typically, analysts will refer to a period of “distribution” where buyers and sellers of hedging and investing ilk will manage their positions.

They will look for the price to travel out of the distribution range to signify if a new uptrend results or a change in trend has occurred. Look at the chart below:

gold.support

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The two horizontal lines represent where traders will be looking to see if gold can stay above these levels price-wise. If not, it may signify that a downtrend in beginning. These rules are pretty straightforward and are the easiest way to find a change in trend.

What’s most important to a trader though is how they trade the trend. Those collective techniques are as unique as your fingerprints and everyone trades the trend differently. What’s important is you find a way to do it that’s comfortable to you.

When I ask the legendary traders how the played gold in the late 70s, they all took giant chucks of the move. They didn’t buy it once and leave it go, they were constantly buying and selling the contract with a long bias.

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