A Golden Time to Buy
The Macro Trader submits:
One important indicator for gold is the Goldollar index. The Goldollar index is formulated by taking the price of gold and multiplying it by the US Dollar Index. This has the effect of giving us the trend of the price of gold isolated from movements in the US Dollar.
As far as we know the Goldollar index was devised by the McClellans of McClellan Oscillator fame. Just as the developers intended, we use this index to help forecast and confirm what the price of gold is likely to do and what it is currently doing. If the Goldollar index breaks out to the upside, gold usually follows. And if it tanks, then gold follow to the downside as well. While it is not perfect, it has definitely aided us in our trading.
Investing, Long Term Investment, stock market | admin March 7, 2010
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