How to use the golden section line in gold investment ? The actual application of the golden section line in gold speculation is mainly concentrated in two aspects. One is to use the magnitude of the gold price callback and rebound to predict the gold price trend, and the other is to judge the callback support area and rebound pressure area of ​​the gold price trend.
(1) Use the callback and rebound magnitude to judge the trend
In the process of gold trading , using the golden section line, the nature of the market and the future trend of gold prices can be judged according to the magnitude of the downward pullback and the height of the upward rebound.
- Judging from the callback range
In a real uptrend, there will be several large-scale corrections. The first target of such corrections is generally near the 0.382 line of the previous rising market height, and the second and third targets are Near the 0.5 line and 0.618 line of the previous rising market height.
If the price of gold pulls back to above or near the 0.382 line, it will resume its upward trend, indicating that the strong upward trend of gold prices is still there. When the gold price breaks down the important support line of 0.382, the 0.5 line of the rising market is the most important support level.
If the price of gold pulls back to above or near the 0.5 line, it turns back up again, indicating that the rising price of gold has not ended. When the price of gold breaks down the important support line of the 0.5 line, the 0.618 line at the height of the rising market is the last support level.
If the price of gold effectively breaks down the 0.618 line, it means that this upward trend is about to end, and the upward trend of gold price will turn into a downward trend or a horizontal movement trend.
- Judging from the magnitude of the rebound
In a big downtrend, there will be several large-scale rebound shipments. This rebound shipment process is of great help for investors to sell gold on rallies. At the same time, the golden section line can also be used. Determine the nature of the rebound.
When the gold price falls from a high level, due to the excessive decline in the previous period, the gold price will have a relatively large rebound. When this rebound height does not reach the 0.382 line, it falls again, which means that this rebound is a weak rebound, and the future decline of gold prices may be more ferocious.
When the rebound height of the gold price does not reach the 0.5 line, it will fall again, which indicates that the rebound is an intermediate resistance on the way to the decline. The downward trend of the gold price is still the same, and the decline has not ended.
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