Goldsilverratio
Educational Study: HOW TO TRADE "SPREAD"Educational Study: HOW TO TRADE "SPREAD"
SPREAD is a strategy in future market.
There are two spreads:
Inner Markret / Inter Market
Inner Market: Buy the GOLD FUTURE IN DEC and SELL GOLD FUTURE in Jan, or vice versa.
Inter Market: Buy the Gold and Sell Silver or Sell the gold and Buy the silver.
The beauty of this strategy is:
You are safer for risky events such as FOMC Meeting.
i.e. no matter what happens, gold and silver they will move together. and base on the location, I prefer to buy the gold and same time sell the silver for this FOMC meeting.
GOLD/SILVER ratio. Bear Flag Simple setup.
Short gold buy silver with target around 54 oz.
Silver was oversold harder than gold from 2011 peak.
That's the main reason.
Also silver is really utilisied not saved like gold.
XAUUSD/XAGUSD SHORT, Gold-Silver ratio SHORTLong term (~5 years) trendline broke, if weekly candle close below trendline, further drop can be expected in the middle/long run. My personal target level to exit is in the 56-60 range.
