GOLD to OIL prices the RATIO ANALYSIS ( and meaning )

2023년 7월 30일

GLD is an ETF tracking gold futures prices across a blend of durations. USO is a similar ETF

for crude oil. I was interested to see what the ratios look like and considering the trading

advise of buy low should I be trading and bartering gold to get oil or viceversa. It is applicable

for be because I am in part a commodities trader and has some activities on the leveraged forex

market.

On the daily chart dressed with a set of two long term anchored VWAP standard deviation lines ,

and some horizontal static resistance lines added, it is obvous to me that the ratio is

currently sitting on the mean VWAP band for support confluent with the lower trendline

of the ascending megaphone pattern which is typically considered demostrative of increasing

volatility. I conclude that if I am a barterer I should trade my oil for gold. If I have gold only

and dry powder I should increase my gold holdings. If I prefer trading oil I should short the

market. This is because the ratio is set up to rise. The means that gold will rise or oil will

fall or some hybrid combination of that. My entry here is when the volatility on the indicator

is green and crosses over the running average.


This is a simple demonstration of how charting with TradingView can help a trader make well-

grounded and profitable trading decisions while lowering risk and making profits more probable.

What do you think of this analysis? What are your agreements or disagreements with it?