Indicators
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Moving Averages (50 days/200 days) - updated 31.12.2010
Description:
Moving averages are trend tracking indicators. If the gold price rises above the (preferably long-term) average this movement can be considered as a signal of an upward trend. If the gold price falls below the average this can be regarded as a downward trend reversal. Example: In November 2008 the price of gold breaks through the 50-day moving average and records a strong upward movement in the following months.
Signals can also arise when employing 2 moving averages, when the short-term moving average breaks through the long-term one from below upwards. A downward trend reversal can arise when the short-term moving average breaks through the long-term one from above downwards. Example: In January 2009 the short-term 50-day moving average breaks through the long-term 200-day moving average from below upwards and signals a continuation of the strong upward trend.
Moving Averages (20 days/50 days) - updated 31.12.2010
Description:
Moving averages are trend tracking indicators. If the gold price rises above the (preferably long-term) average this movement can be considered as a signal of an upward trend. If the gold price falls below the average this can be regarded as a downward trend reversal. Example: In November 2008 the price of gold breaks through the 20-day moving average and records a strong upward movement in the following months.
Signals can also arise when employing 2 moving averages, when the short-term moving average breaks through the long-term one from below upwards. A downward trend reversal can arise when the short-term moving average breaks through the long-term one from above downwards. Example: At the beginning of December 2008 the short-term 20-day moving average breaks through the long-term 50-day moving average from below upwards and signals a continuation of the strong upward trend.
14 day - RSI - updated 31.12.2010
Description:
The RSI is one of the most popular technical indicators. It measures the internal strength of a current price movement in relation to the average upwards and downwards movement of a comparable period. The RSI varies on a scale of 0 to 100. The RSI generates trading signals when it reaches a level above 70. The market is deemed overbought and thus too expensive according to technical analysis. A level of below 30 indicates that the market is oversold and thus too cheap. The clear signal comes when the price moves out of the extreme ranges.
Example: If the RSI moves out of the overbought, red area, crosses the upper signal line and then goes down, a downward market reversal exists. If the RSI moves out of the oversold, green area, goes up and crosses the lower signal line at 30, an upward market reversal exists. Conclusions can also be drawn from divergences. If the price of gold goes the opposite direction from the RSI, this indicates an end to the ruling trend.
30-day volatility - updated 31.12.2010
