How To Trade Gold & Oil – The past couple weeks have been tough for most investors. The recent light volume rallies which have taken place in gold, oil and stocks has been generating mixed signals for technical analysts like myself. In order avoid a large draw down on your trading capital you must focus on the long term intraday charts.
What is a long term intraday chart you ask? It is simply a 4 or 8 hour candlestick or bar chart. For example the charts below in this report are 4 hour charts. So each candlestick represents 4 hours.
Why should you use these long term intraday charts instead of say a daily chart? There are four main reasons for this:
[Related -S&P 500 Index 7-Week Winning Streak]
[Related -Sector Detector: Is There Still Enough Fuel In The Bulls’ Tank?]
Let's take a look at the charts…
Gold Futures Contract – 240 Minute (4 Hour) Chart
Gold finally broke down from the bearish rising wedge which it had been forming through late September until mid October. I know the majority of traders, investors, and financial newsletters have already positioned themselves either long or short the metal as they anticipate the next major move.