Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Its Time for a Gold Perma Bull? – Long Term Analysis

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Gold Monthly charts – Dollar Denominated

Thats Gold monthly timeframe showing consolidation in the band of 1050-1350 for the last 5 years. Monthly ADX is maintaining below 20 since the year 2017 that shows the dullness in the trend at the broader level.

However, on the Weekly timeframe, ADX is maintaining above 25 and pricing is one-timeframing for the last three weekly sessions and more time is spent trading around 1300 psychological round number levels.

Gold Weekly charts – Dollar Denominated

And Gold Daily ADX values are currently below 20 levels indicating sideways markets.

Gold Daily charts – Dollar Denominated

Overall from the multi-timeframe trading – markets are moving up in a relatively slow fashion on a broader scale. Monitoring Daily ADX is much required at this movement as price moving along with ADX on the positive side could bring a cascading effect on the uptrend.

What to read from ADX?

If ADX is between 0 and 25 then the particular trading instrument is in a trading range. It is likely just chopping around sideways. Avoid these weak, pathetic stocks!

Once ADX gets above 25 then you will begin to see the beginning of a trend. Big moves (up or down) tend to happen when ADX shoots above 25

When the ADX indicator gets above 30 or 35 then higher the number bigger the strong trend!

If ADX reaches greater than 50 then one should see trends coming to an end and trading ranges start developing again.

Based on the above multi-timeframe analysis on ADX one could conclude that only Weekly timeframe is developing a trend rest the daily and monthly are consolidating. However rise in ADX on daily timeframe is the key for sustained and accelerating uptrend.

Monthly Breaking 1350 levels with accelerating ADX value on monthly timeframe is the key for long term sustained uptrend

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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