When the price of gold falls and cannot fall, the gold market often reverses and bottoms out, but most gold investors cannot judge when the trend will change, which leads to entering the market early and waiting for the real bottom to reverse. I am afraid that there are no more positions to cover the positions or have already left the market. So how can we judge that the gold price trend has bottomed out and reversed?
- Characteristics of indicator divergence
The characteristics of indicator deviations require comprehensive research and judgment. If only one or two indicators deviate from each other, it does not mean that the market must be in the last decline. However, if multiple indicators diverge on the monthly, weekly, and daily lines at the same time, then the market is most likely to complete the last drop. Judging the trend reversal can be inferred by the change of the indicator. The indicator often shows the change of the long and short power behind the market, and the change of the long and short power has produced a trend change.
- The characteristics of the decline range
In a weak market, it is difficult to confirm the last drop of the London gold market in terms of the adjustment range. At this time, it is necessary to combine the means of technical analysis to confirm whether it is the last drop. The price of gold will rise for a long time, and it will fall if it rises for a long time. This is the eternal truth.
- Market Popularity Characteristics
Before the formation of the last drop, due to the long-term decline of the London gold market, a heavy hold-up will be formed in the market, and the popularity is constantly being exhausted. It is often at the moment when the market sentiment is extremely sluggish, and it is precisely when the real low point is not far away, whether it is extremely peaceful.
- Policy features
This is the most critical factor in achieving the last fall, which mainly includes two aspects: one is that some deep-seated problems that have long plagued investors’ development can be supported by clear policies; the other is that the market development Can get active cooperation from the policy side.
- Trend morphological characteristics
During the formation of the last drop, the technical form of the precious metal index will break out and accelerate the decline. Various technical bottoms, market bottoms, policy bottoms, as well as support levels and barriers, all appear to be weak. .