Gold Rush with AI: Is a Bullish Trend broken?
Updated
Dear Esteemed TradingView Members,
In the intricate dance of financial markets, recent analytics hinted at a potential dip in Gold prices towards the next support zone, resting delicately around the current trendline and $1920. In a broader view of gold, the prevailing trend remains steadfastly bullish. The recent descent, therefore, wasn't a harbinger of a bearish trend but rather a retracement within the overarching bullish narrative. Retracements, akin to ripples in a vast river, move against the current without altering its course.
In this light, the bullish trajectory of Gold persists, despite the transient shadow of bearish developments. The true nature of this episode—whether a mere retracement within a bullish trajectory or the inception of a bearish divergence—might unveil itself by the first quarter of 2024. For those inclined towards the former, signs may include ascending RSI values, dwindling volume bars, and price actions hovering modestly above the demand zone.
However, should this unfold as a pivot towards a bearish trajectory, anticipate a descent where RSI mirrors the fall in price, breaching the demand zone, and volume maintains its pressure at a consistent or escalating level? While my inclination leans towards the bullish scenario, it's imperative to remain vigilant of the alternate narrative.
Navigating the dynamic terrain of financial markets involves intuition and a judicious blend of analytical prowess and cutting-edge tools. In my recent analysis, I utilized Gradient Boosting Machines (GBMs) to sculpt the contours of my demand zone, adding a layer of sophistication to the predictive landscape.
So, what are GBMs?
Gradient Boosting Machines stand as a formidable force in machine learning. A distinguished member of the ensemble learning family, GBMs artfully weave together multiple decision trees, harmonizing their collective insights to refine predictions. While their computational prowess is undeniable, it's worth noting that GBMs tread on the more resource-intensive side, making them a powerful yet demanding ally in the quest for accuracy.
Advantages of GBMs include the capacity to attain high accuracy levels and tackle intricately woven datasets with finesse. However, this prowess comes at a cost—GBMs can be computationally demanding during the training phase and exhibit sensitivity to the choice of hyperparameters.
In tandem with GBMs, my analysis delves into the nuanced language of financial indicators, such as the Relative Strength Index (RSI) and volume. RSI, a stalwart in technical analytics, gauges the magnitude of recent price changes, offering insights into the overbought or oversold nature of an asset. Volume is the heartbeat of market movements, signaling the intensity and sustainability of price shifts.
Together, these tools form a symphony of insights, guiding us through the intricate dance of market dynamics. As always, this isn't investment advice but a shared exploration of market intricacies. Your funds are your responsibility, and understanding the tools at your disposal empowers you in this journey.
It isn't investment advice but a nudge to delve into your research. Your funds are your responsibility—handle them with care. Embrace risk-management strategies, explore available safety nets, and prioritize the preservation of funds over fleeting gains.
Warm regards,
Ely
In the intricate dance of financial markets, recent analytics hinted at a potential dip in Gold prices towards the next support zone, resting delicately around the current trendline and $1920. In a broader view of gold, the prevailing trend remains steadfastly bullish. The recent descent, therefore, wasn't a harbinger of a bearish trend but rather a retracement within the overarching bullish narrative. Retracements, akin to ripples in a vast river, move against the current without altering its course.
In this light, the bullish trajectory of Gold persists, despite the transient shadow of bearish developments. The true nature of this episode—whether a mere retracement within a bullish trajectory or the inception of a bearish divergence—might unveil itself by the first quarter of 2024. For those inclined towards the former, signs may include ascending RSI values, dwindling volume bars, and price actions hovering modestly above the demand zone.
However, should this unfold as a pivot towards a bearish trajectory, anticipate a descent where RSI mirrors the fall in price, breaching the demand zone, and volume maintains its pressure at a consistent or escalating level? While my inclination leans towards the bullish scenario, it's imperative to remain vigilant of the alternate narrative.
Navigating the dynamic terrain of financial markets involves intuition and a judicious blend of analytical prowess and cutting-edge tools. In my recent analysis, I utilized Gradient Boosting Machines (GBMs) to sculpt the contours of my demand zone, adding a layer of sophistication to the predictive landscape.
So, what are GBMs?
Gradient Boosting Machines stand as a formidable force in machine learning. A distinguished member of the ensemble learning family, GBMs artfully weave together multiple decision trees, harmonizing their collective insights to refine predictions. While their computational prowess is undeniable, it's worth noting that GBMs tread on the more resource-intensive side, making them a powerful yet demanding ally in the quest for accuracy.
Advantages of GBMs include the capacity to attain high accuracy levels and tackle intricately woven datasets with finesse. However, this prowess comes at a cost—GBMs can be computationally demanding during the training phase and exhibit sensitivity to the choice of hyperparameters.
In tandem with GBMs, my analysis delves into the nuanced language of financial indicators, such as the Relative Strength Index (RSI) and volume. RSI, a stalwart in technical analytics, gauges the magnitude of recent price changes, offering insights into the overbought or oversold nature of an asset. Volume is the heartbeat of market movements, signaling the intensity and sustainability of price shifts.
Together, these tools form a symphony of insights, guiding us through the intricate dance of market dynamics. As always, this isn't investment advice but a shared exploration of market intricacies. Your funds are your responsibility, and understanding the tools at your disposal empowers you in this journey.
It isn't investment advice but a nudge to delve into your research. Your funds are your responsibility—handle them with care. Embrace risk-management strategies, explore available safety nets, and prioritize the preservation of funds over fleeting gains.
Warm regards,
Ely
Note
Gold has bounced right from the blue box on the chart.Trade closed: target reached
🧈 Excited to share that the first target on my gold long has been reached. Amidst in-person conferences, the power of AI NLP algorithms proved remarkable, predicting the impact of world news well before it reached the public eye. The democratization of knowledge through open-source NLP libraries is a beautiful stride for all. ♡♡♡Note
Gold is consolidating below the target zone. Is breakout in preparation?Trade closed: target reached
Gold has achieved the second target price of the explained long position. If you wonder how AI generates these targets, you can look into boosted random forest algorithms. Here, "boosted" means a sequence of different trading bots. I "boosted" bots via WebSockets and APIs. The various bots use decision trees to conclude unique estimations, and the targets on the chart are the final result of the sequence. You can exploit these techniques with open-source libraries, like in Python 3.12.Note
The price has reached the first blue forecast, touching the resistance zone around $2009. This zone offers flexibility, allowing you to either take profit within the zone itself or place a trailing stop-loss order below the resistance zone. If gold subsequently declines, the trailing stop-loss will activate, safeguarding your profits from the blue forecast.Note
XAU has been holding the line against the supply zone. If we accept the bullish trend, as AI suggests, I'd consider a possible breakout through the resistances.Note
Although gold hit the first target price, it continued to progress in a sideways local trend below the resistance. It questions the power of bulls to break through the resistance, for the moment.Note
Gold is approaching the second and highest target price indicated on the chart. The price is currently slightly below the top supply zone, which is the final zone shown on the chart. With a little more upward momentum, the price could potentially reach all of the target prices.Trade closed: target reached
Gold won all target prices. The forecast is fulfilled. Cheer for the ultimate closure of the idea. Happy profit everyone! ✅
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