Gold: Annual Targets And S&D Prices For 2019/2020 Season

The trend momentum is to be protected on a close below $1,454. The average price for next year is $1,417, so this is another level of protection you can use to protect your long-term positions if you have a long-term bias in the market that the S1 and S2 levels will be completed in 2020, as we strongly believe. Ideally, the work indicates that this will happen in the first quarter of 2020.

The VC PMI artificial intelligence gives you the directional trend of the market based on the yearly price indicator, it also gives you the alternative to protect your position. The first level is a close below $1,454, which would negate this bullish trend momentum to neutral. A close below $1,417 would negate this long-term bullish trend to neutral and a close below $1,417 activates the targets below the mean of $1,269 (Buy 1) to $1,031 (Buy 2).

The VC PMI Automated Algorithm

We use the proprietary Variable Changing Price Momentum Indicator (VC PMI) to analyze the precious metals markets and several indices. The primary driver of the VC PMI is the principle of reversion to the mean ("Mean Reversion Models of Financial Markets," "The Power of Mean Reversion in Factor-Based Investing"), which is combined with a range of analytical tools, including fundamental logic, wave counts, Fibonacci ratios, Gann principles, supply and demand levels, pivot points, moving averages, and momentum indicators. The science of Vedic mathematics is used to combine these elements into a comprehensive, accurate, and highly predictive trading system.

Mean reversion trading seeks to capitalize on extreme changes in the price of a particular security or commodity, based on the assumption that it will revert to its previous state. This theory can be applied to both buying and selling, as it allows a trader to profit on unexpected upswings and buy low when an abnormal low occurs. By identifying the average price (the mean) or price equilibrium based on yesterday's supply and demand factors, we can extrapolate the extreme above this average price and the extreme below it. When prices trade at these extreme levels, it's between 90% (Sell 1 or Buy 1 level) and 95% (Sell 2 or Buy 2 level) probable that prices will revert to the mean by the end of the trading session. I use this system to analyze the gold and silver markets.

View single page >> |

Disclosure: I am long NUGT.

To learn more about how the VC PMI works and receive weekly reports on the E-mini, gold and silver, check us out on  more

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.