Target from 27 OCT 2014 defined as target-extreme at 79.81 was finally hit with a significant doji. A decline from this level suggest a probable rallying in XAG pricing relative to XAU.
In this following XAU 4-hour chart, price did reach the predictive extreme bearish target, and managed to carve structural lows. Since then, a rallying has occurred, as price surpassed the prior bearish target. Look for a continued ascent here:
On a finer granular level relative to that weekly chart above, this 4-hour chart suggests a near-it of the 1-4 Take-Profit line. Considering the recent price action, I would guard against any bearish expectation here:
While the XAUUSD charts point to a rallying in XAU against the relative strength decline in the XAU vs. XAG chart, then I would expect a relative strengthening of the XAG against the XAU.
This suggests that this following chart might have run its course, if this relative strength expectation were to materialize:
Here is a XAUUSD vs. XAGUSD chart with a much older forecast and similar target - Hit and probable reversal here as well, based on the same relative strength expectation as just discussed:
Hi, how can i calculate the dollar risk ratio on FXCM? My trade size is currently 300 for XAGUSD and 4 for XAUUSD but I have no clue whether that's the right ratio. Please advise.
4xForecaster
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Hell @CuneR - This is a question very much worth asking one of the FXCM site, unless there is someone on TradingView who can answer this question for you - David
4xForecaster
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12 JAN 2015 - Update:
From Twitter:
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XAUUSD vs. XAGUSD chart eyes WW's 1-4 Line support:
Note that a decline of this relative strength chart does NOT imply a decline in XAUUSD, but implies the plausibility that XAGUSD would regain ground against XAUUSD, pushing price back towards a structural equilibrium in price, as suggested by the forecast arrow in the chart.
Here is a XAUUSD vs. XAGUSD chart with a much older forecast and similar target - Hit and probable reversal here as well, based on the same relative strength expectation as just discussed:
- tradingview.com/e/sooF1eVk/
David Alcindor