Goldsilverratio
GOLD Situation - 21/Oct/2020Hello Traders,
Hope you all are doing good!!
GOLD is under bullish momentum.
1900 level will act as support as long as the G:S ratio is under 79 level.
G:S is under weekly VWAP , however has a support level at 75.5, hence i expect gold to rise till 1932 level & find some resistance there.
G:S has to break the 80 level in order to make GOLD go in bearish momentum & 75 level for more Bullish momentum.
Till then, i believe 1895 to 1932 levels in gold will serve as range.
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Disclaimer: This is just an idea. Please do your own analysis before opening a position.
Gold/SIlver ratio - revisitedWe have strong daily bullish divergence on the daily chart getting ready to play out. The higher the number, the more silver it takes to buy gold. In a downtrend, Silver would lose more (percentage wise) than Gold. I still expect 134 to get hit at some point (perhaps early next year). This is based on the mammoth head and shoulders formation on the monthly chart (posted below). Crazy? Well, so was 126. These days, this wouldn't shock me one bit.
if 83 holds, we could have a mammoth run again past the old high
How to trade GOLD/SILVER RATIO in Any platform!?This is the first educational post I Make on Tradingview so make sure you like and comment and follow if you like it,
in this post I will explain how to trade The GOLD/SILVER RATIO in any platform
You can use the same strategy to trade ETH/BTC in Binance Futures with leverage ...
first lets define what is gold silver ratio ,
The gold/silver ratio (GSR) is the current price of an ounce of gold divided by the current price of an ounce of silver. It's a simple numerical calculation that shows how many multiples gold is trading relative to the price of silver, a common indicator used by precious metals investors worldwide.
this indicator help us know which is going to gain more or wich is going to lose more in some cases when there is high volatility in the markets you might find this chart stable with very strong trading opportunity for example back in the 26/2/2020 when the markets were uncertain and volatile this chart made a very good breakout and huge gains! you can find that on the chart above
so now lets explain how to trade it in any platform that have GOLD/USD and SILVER/USD
if you want to short the GSR
all what you need to do is to sell short GOLD and buy long SILVER with the same amount of money and leverage in each of the positions
Example
if you open a long position with 1000$ and x3 in SILVER/USD you have to open a short position in GOLD/USD at the same moment with 1000$ and x3 leverage.
If you want to long the GSR
all you need to do is the opposite of shorting we buy GOLD/USD and sell SILVER/USD with same rules again we should use the same amount of money and us the same leverage in each of the two position.
thanks for reading good luck
Time to sell silver for Goldi definitely believe this is the time we have to sell silver for more Gold. it is struggling to surpass the green pivot point . Meaning i do not think it is going to lower the silver price any time soon. . Also it has already broken out of the red pivot point. i was looking at the overall silver analysis and i believe another bull market is potentially on the way. This ratio is just proving it . silver is going to cost more resulting in a lower gold silver ratio. Im buying silver now before it makes another big move. Please leave some feedback! Are you buying or not ?
Is Gold about to outperform Silver again for years?Another simple study of mine looking at the pressure point of the Gold/ Silver ratio.
As you see since 1980s, every time GC/SI reaches the 0.5 Fibonacci retracement level, whether it is on a mini wave or hyper wave, the price rebounds strongly and for many years.
If the current wave is mini or hyper it is up to you to decide and set your target accordingly but most likely once contact will be made with the 0.5 Fib again, Gold is likely to outperform Silver for at least 5 years.
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XAUXAG ratio to go to 20, could possibly go lowerXAUXAG ratio to go to 20, could possibly go lower, that's a strong case for silver. Not betting so much on the pullback, but the dollar strength could initially mean a dip in both Gold and Silver, but when the bounce back silver will gain at a much faster rate than gold.
Not a bad idea to jump in now if you are not using leverage.
What do you think? Drop a comment below and share your own charts.
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Does the gold/silver ratio predict gold's downturn?MACD and RSI for the Gold / silver ratio is very low and it touches a support line. It points towards a turnaround where the price of gold will increase compared to silver. This has previously been the warning sign of a turnaround in the price of gold. Does this show a setback is coming for the goldbugs?
Use this ratio to forecast gold & silver movesThis ratio will help you to forecast XauUsd & XagUsd. When you forecast gold and silver next moves also use this ratio as an indicator. Currently this ratio is bearish, but expect some correction soon. Bearish ratio means XauUsd has more weakness than XagUsd, and vice versa.
Free Trading plan GOLD SILVER Ratio Selling Calls & PutsFollow the plan: Today the Ration id DOWNTREND and Prices are UP. So buy Silver (see below).
No Options trades as BB width is "narrow"... so sit and hold. Use 1 or 4hr and Daily Charts for true trends.
GOLD-SILVER RATIO TREND GOLD AND SILVER TREND SIGNAL
Gold-Silver Ratio Uptrend Gold and silver in Uptrend Buy Gold
Gold-Silver Ratio Uptrend Gold and Silver in Downtrend Sell Silver
Gold-Silver Ratio Downtrend Gold and Silver in Uptrend Buy Silver
Gold-Silver Ratio Downtrend Gold and Silver in Downtrend Sell Gold
Options Arbitrage vs. Spot Pricing delays-
Gold will move first. Then Gold Miners then Silver. You can't be "too late" to a major move in the precious metals.
Watch for major events and Currency changes/announcements. Also Triple or Quad "Witching Days" can make sell moves on
precious metals as trades need cash to cover margin calls.
Never sell options when Bollinger Bands are 'narrow'. Just sit... MACD and MA can show trends and Peaks. See Charts.
When BB width is "Wide" and Price is "Up" then sell CALLS.
When BB width is "Wide" and Price is "Down" then sell PUTS.
Physical ETF's- I don't feel SLV and GLD can actually "deliver" physical bars to paper holders... Caveat emptor.
XAGUSD
SIVR
SLVO
XAUUSD
OUNZ
GLDI
IAU
GLDM
SGOL
BAR
AAAU
The ratio has reached the line of support.We took the profits from our short position in the ratio, as well as the profits from the silver long position. For now I expect to see some sideways trading and the ratio could pullback towards the 93-94 area. I don't see a reason to go long in this case, however it is an opportunity. If you wish to take the long position in the ratio - bear in mind the fact that the silver market is very strong and the trend could easily be broken without retracing back towards the 93-94 area. To monitor this - close out the long below 87.5 and enter a short position again targeting 81.5. I will make another update as soon as I see some movement.
Gold-Silver-Ratio - Silver undervaluedI find the current overvaluation of gold compared to silver very exciting. As you can see on the chart, the XAUXAG's ratio style rebounded at the upper falling resistance level in April (82.58 to 1) and is now heading back to the bottom for the next few years before ending in an overvaluation phase of silver.
A first goal is the ratio of gold to silver from 50 to 1 as indicated by the arrows in the chart and is the 61,8% correction of 2011 low and 2016 high.
Important:
This does not mean that silver-has to go through the roof, for example, it would be enough if gold-falls and the price of silver-remains constant.
Therefore, for all precious metal fans, a switch from gold to silver is currently interesting, because-currently I can still exchange 77 to 1, later perhaps only 50 gold shares to 1 silver share or even worse. The chance risk ratio is at interesting 4.5 to 1 when the stop loss is set to the last April high.
On the other hand, then silver-producers would be interesting. For example, ImpactSilver (88% SilverProduction) or Golden Arrow Resources (72%) or First Majestic Silver (63%) or Endeavor-Silver (60%) or Silvercorp Metals (57%) or SilverCrest (52%) or Fortuna-Silver-Mines (51%). These would accordingly be the "natural" leverage instruments with rising silver prices. Let's see if I will do separate analyzes on these values.
Greetings from Hannover
Stefan Bode
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Gold Silver Ratio trades... when to buy/sell XAUUSD/XAGUSD ratioGOLD-SILVER RATIO TREND GOLD AND SILVER TREND SIGNAL
Gold-Silver Ratio Uptrend Gold and silver in Uptrend BUY Gold
Gold-Silver Ratio Uptrend Gold and Silver in Downtrend Sell Silver
Gold-Silver Ratio Downtrend Gold and Silver in Uptrend BUY Silver
Gold-Silver Ratio Downtrend Gold and Silver in Downtrend Sell Gold
Gold/Silver Ratio Is FlaggingWhen the gold/silver ratio is high, gold is relatively more expensive than silver, by historical standards. Some people use this ratio to trade between the metals.
For a very long-term investor, the trade works like this: when the ratio is high, buy silver, and wait for the ratio to revert towards its mean. Then, sell the silver and buy gold at a better relative price and wait for the ratio to rise.
Using this oscillation you can accumulate precious metal using nothing but the mean reversion between the two metals.
Now, that said, the 19th century average gold/silver ratio, I believe, is around 47. By those standards, the ratio is extremely high right now. On the other hand, the rise has occurred in a very steady long-term rising trend channel that began during the Great Financial Crisis.
Long-term chart:
It seems to spend ages along one side of the channel before moving to the other and inhabiting that region for quite some time.
The question I cannot answer is: will the historical mean be revisited any time soon, or is the inflated ratio somehow a byproduct of unprecedented central bank intervention?
That said, I will add a couple of comments regarding the short-term picture. During the crash the ratio mooned, breaking out of the channel for the first time in geologic eons, and has since worked its way back in. The process of reentry looks to be taking the form of easily identifiable flagging, and that last flag looks to be breaking.
How would one trade this, if they were so inclined? I if they thought we were heading to the lower bound of the channel, one would buy silver now, and then if we find the bottom of that channel, perhaps swap it for gold, since the channel is gradually rising. That's just a guess. We live in unprecedented times and these assets might become quite volatile in the coming weeks and months.
If one believes we will ever revisit the ratio's very long-term mean in the 40s, they would only hold silver until it does. I have no idea if that will happen.
Gold / Silver ratio climbs as Covid 19 spreadsChanges in the Gold/Silver ratio indicate changes in the demand for Gold as compared to demand for another precious metal, namely silver. Ratio increases often coincide with accelerations in market volatility and, consequently, money flow to Gold, long considered a "safe haven".
The ratio's climb is approximately linear and the black trend line is consistent with multiple reversals in direction. Some of these are labeled with a news headline from that day.
Limitations and future directions: Headlines were chosen under the working hypothesis that the ratio's climb is largely explained by the spread of the Covid 19 virus. It would be useful to understand the nature and strength of this association. Another direction of inquiry is the association between the ratio and, within the Covid 19 context, other measures of sentinment and volatility (VIX, Real Estate, etc.)
The ratio's increase supports a long position in gold.
GOLD/SILVER ratio in the Subprime and COVID crisesI don't know how many of you speculate on the Gold/ Silver ratio but I do. And I have come across an interesting pattern in 2008 during the Subprime Mortgage Crises that may be repeated now during the COVID crisis.
As you see on the chart, the LMACD is the key indicator on it, and it has topped at 0.069. At the same time the price action is very similar with 2008 as the March spike got sold aggressively and is declining towards the 1M MA20 and MA50. A break below may lead to a 2008-like -60% drop in total.
Do you think a potential upcoming global recession can repeat this pattern?
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