SPDR Gold Trust - the largest gold ETF world

SPDR - The product name for the Standard & Poor's Depositary Receipt, which is an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor's 500 Index (S&P 500). Each SPDR share represents one-tenth of the S&P 500 index and trades at roughly one-tenth of the index's dollar value. The term also can refer to the general group of ETFs to which the Standard & Poor's Depositary Receipt belongs. With vast holdings, each purchase dynamics of SPDR Gold Trust have strong influence on the market. SPDR Gold Trust is one of the trust fund (ETF) SPDR managed by State Street Global Advisors - a division of State Street Corporation, Asset Management Group the second largest in the world.

Previously known as SPDR Gold Trust and StreetTracks to 20/5/2008, the fund was renamed SPDR Gold Trust.
As of May 6/2012, SPDR Gold Trust is the sixth largest trusts in the United States and is the largest gold trust world.

Instead of trading physical gold, investors purchasing shares of the SPDR Gold Trust. SPDR Gold Share the SPDR Gold Trust shares issued by, sponsored by the World Gold Council. This stock is listed on the New York Stock Exchange on 11.18.2004 with the GLD code and traded on NYSE Arca from 13/12/2007.
So far, SPDR Gold Shares is trading at 4 floors including floor New York Stock Exchange Arca (NYSE Arca), Singapore Stock Exchange, Tokyo Stock Exchange and the Stock Exchange Hong Kong.

Each initial GLD shares worth the equivalent of 1/10 ounce of gold. When the stock price is different from the current price of gold, the fund will exchange for gold stocks. Often each sale, will fund at least one basket swap equal 100,000 shares, each basket is then exchanged for 10,000 ounces of gold. With this mechanism, the stock price is guaranteed SPDR similar to gold prices. The number of gold bought and sold each day are publicly SPDR Gold Trust.

Paulson & Co. fund billionaire John Paulson is currently the largest shareholder of the SPDR Gold Trust, with assets of up to U.S. $ 3.62 billion in 2012.

Physical gold holdings by the SPDR Gold Trust gold vault beneath the HSBC Bank in London - the monitoring of the fund, or in the basement of a branch of the HSBC bank in the form of 400 oz gold bars.
Soros Fund Management LLC Fund of billionaire George Soros also increased holdings of SPDR Gold Trus additional shares 49% in the quarter to 1.32 million shares III/2012.

The amount of gold held by the SPDR Gold Trust increased. If 8 tons of gold that the fund is held on the first trading day prior to the date 10/01/2013 11/18/2004, this fund holds 1337.73 tonnes of gold, equivalent to more than 43 million ounces of gold, worth price of U.S. $ 72.02 billion. The amount of the fund's holdings to a record 1353.34 tonnes on 7/12/2012.

Currently, the gold trusts holding about 2,630 tonnes of gold, equivalent to the output of the world's gold mining within 1 year. With such large holdings, the gold ETF SPDR Gold Trust in general and in particular have important influence to the world gold market. In sensitive cases, the dollar and the oil market are unpredictable, the trading dynamics of the attention has focused ETF.

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Best BB MACD with kijun envelope trend H4 Strategy

H4 Strategy This Strategy using kijun envelope to identify the trend with 2 band envelope. The rule is like other trending system, the trend is friend, we will wait for the trend indicate itself, then specify the entry point. The trend is up when kijun and 2 band are moving upward, the trend is down when kijun and 2 band are moving downward. Using the BB_MACD indicator to get the signal, red dot for the bearish signal, and green dot for the bullish signal.

You can see it in the chart below:

The good signal is the change of BB MACD color with the price is close to the kijun line. BB MACD is one of the best leading momentum indicator, be careful when the divergence appear.
You can find another version of MACD in my indicator collection.
Kijunsen envelope indicator.
Thanks for Reading.

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Trend line and divergence breakout signal.

At this time, there are many ways to use the oscillator indicators to mesure the market momentum and identify the entry signal, it has been used in many trading strageties, one of them is trend line breaking signal. The rules is very simple: The indicator indicates the divergence, it's mean the current trend is slowing down, then waiting for the break of the current trendline, this rule applys for both up and down trend. Remember this signal can be the big retracements or the reversal, see the bigger trend to make the best decisions.

You can get the indicator a here: ADXm

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Trending and sideway identifier

There many way to identify the situation of the market, here is one of  the best idea to identify the market is trending or sideway: we using the bollinger band and keltner channel, if the bollinger band is inside the keltner channel , it's mean the sideway situation. Contrarily, The market is in trending situation. This idea was used in BB squeeze indicator, you can see in this image:

you can modify the indicator, with many options.

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Candle stick identifier indicator

There are many kind of candle stick type, you are confusing with it. This indicator will help you solve this problem. It can be used in many system like trend trading, or divergence trading system. you can get it in there: Candlestick - Candlestick Identification_MT4_In

Candle stick patterns

It can identify many pattern like : engulfing, harami, doji, dark cloud cover...
Don't use it alone, combine with identifying the trend, and get the entry.

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Elliott wave trading strategy

This strategy using Elliott wave oscillator to identified the trend and courting the Wave. The biggest move of the oscillator is the 3rd wave. The divergence at the wave 3 and the wave 5, it will be the next A B C sequences, or the reversal. Indicator: Elliott Wave oscillator.mq4 Juice.ex4 you can find it on my indicator collections.

Elliot wave oscillator

Buy when EWO upper zero line, and sell when it under zero line
Just make decision when juice indicator upper 0.0004.

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Keltner channle with CC_divergence

This stragety using keltner channel to identify the situation of the trend, and using CC_divergence to get the entry point. It's useful for every major forex pairs. H1 stragety.  Detail: cc_Divergence.ex4 KeltnerChannel_v1

Long entry rule:

buy when keltner channle up, and cc_divergence up, stoploss below the closest swing point adding spreads.

Short entry rule:

Sell when keltner channle down, and cc_divergence down, stoploss below the closest swing point adding spreads.

Notice: the divergence appare it's mean the huge retracement or the reversal.

keltner channle with CC divergence

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HIGH PROBABILITY DIVERGENCE SETUPS

Welcome to the second part where I am explaining how you can use divergence with some tips and tricks I have learnt over the years to pinpoint market turning points with high accuracy. 

In the part 1 (price swing prediction) we discussed standard divergence and what to look for with your preferred indicator to spot this setup. Now its time to dig a little further and see how deep the rabbit hole goes! 

High Probability Divergence Setups!

Through years of trial and error I have discovered what works and what does not. Divergence by itself is a bit hit and miss, you never really know if the divergence will play ball or not. This is probably why many traders give it a try then decide to leave it for something 'supposedly' better. Sadly, they didn't know how close they were to the pot of gold!

By combining divergence with some simple price action tools we can turn that hit and miss setup into a very accurate entry technique.

Before we go into these tools, let me show you my absolute favourite type of divergence. I call it the DTD & DBT (double top divergence / double bottom divergence). This type of divergence has pinpointed trend reversals more times than I can remember. All you are looking for is a double top or double bottom in price then for your preferred indicator to also show strong divergence. 

Below is an example of a DBD on the GBPUSD 4H chart, this setup captured a 700 pip trend reversal! In all examples below I am using RSI indicator set to 6 for divergence.

I know what you're thinking, that was cherry picked and just a one off right? Wrong, these setups happen all the time across all pairs, in fact lets take a look what happened at the end of the 700 pip move shown above.

Yep you guessed it another DTD which again captured a trend reversal of almost 900 pips!

The reason DTD and DBD setups are so powerful is because they combine confluence of support or resistance into the setup. In order to have similar success with standard divergence you will need to be extra picky about the setups you choose. Look for setups that happen as price is coming up against strong areas of support or resistance.

Timing Your Entries!

Entry's can be tough because most entry techniques are lagging and therefore get you into the move late eating into your potential profits. But don't worry, I am going to show two price action entry techniques I use all the time with astonishing success trading divergence setups.

Once I have a DTD/DBD or standard divergence with strong confluence I start watching price action at the close of each new candle. I am waiting for one of the two candle formations below to clearly appear. 

Once the candle formation forms and the candle has closed (very important) I enter at market with stops above/below the candle formation.

If you take another look at the two setups above on the GBPUSD you will see that both setups triggered with an engulfing candle formation! A fluke? Nope, this happens all the time :-)

Ok, so that's part two of this mini divergence course over and done with hopefully it has provided you with some new tools to add to your trading toolbox. Remember, the key to success is to be picky, wait for strong confluence to line up or better still a DTD/DBD setup.

We are not done yet though,  Follow me over the next few days for more awesome divergence tips and tricks.
Have fun & good trading!

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BANK TRADER REVEALS BREAKOUT STRATEGY

Hello traders,

Today I would like to show you a technique that is valid for all currency pairs and all time frames (my group in the bank tend to use it mostly on the Daily and Weekly charts to avoid market choppy noise). The name of this strategy is the Breakout, Congestion and Continuation pattern, and it�s a high probability setup given the right circumstances. If you master this technique, you could achieve a 75% to 80% win/loss ratio!

The key concepts are the universal pattern of any currency pair : continuation pattern after a strong momentum breakouts of key Support / Resistance levels, using candlestick formation made by 3 consecutive candles.

Search for the pattern only upon the breakout of a significant horizontal level of support / resistance 

The pattern : You must see a solid breakout candle breaking through the Support / Resistance level

Don't trade if you get "shaky" breakout candles

Trade only when you see one small candle beyond the support / resistance level, then place your stop orders as shown below

Close 50% of the trade at the close of the first continuation candle, then move stoploss to break even.

Finally, close remaining 50% of the trade at the close of the second continuation candle.

There is 75%-80% winning ratio if you follow this strategy. Good luck !

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HOW TO PREDICT PRICE SWINGS IN ADVANCE

Have you ever wished you had an indicator that would predict a price swings in advance? Well chances are you already do, it's just that you have yet to discover how to harness its power. 

Confused? Don't worry it will become clear! 

I'm not a big advocate of indicators, I do use some common indicators in my trading but all indicators have a major flaw when it comes to trade entries. Indicators follow historic price and consequently are always lagging behind price. However there is a technique to use selected indicators in relation to price structure, which can give you an accurate leading indication of when price will turn! 

I am of course talking about Divergence. I know divergence is no big secret, but when used properly it is extremely powerful in predicting price swings. If you have never used divergence then you are in for a real treat. If you already use it then hopefully some of these tips and tricks will help increase your accuracy. Over the next 2-3 posts I will share with you what I have learnt from the many years of trading divergence setups. I have a tested a multitude of different indicators, entry techniques and time frames. I have discovered through backtesting plus trial and error what works and what does not. 

First things first, lets get the basics out of the way, once you have a grasp of the basics we will discuss some cool tips and tricks I use which will help you spot these powerful setups plus get in at the right time.

For standard divergence, we are watching the highs and lows of price in relation to the highs and lows of the indicator. In an up trending market we are watching the higher highs and waiting for the indicator to begin showing lower highs. In a down trending market we are watching the lower lows and waiting for the indicator to begin showing higher lows. 

Please see my crude sketches below for reference. :-)

 

The red doted price line indicates the expect direction of price due to the divergence setup.

What indicator should you use? 

Many oscillators will work fine for spotting divergence. Here are a few that I have used with great success.

- MACD (trigger lines or histogram) 

- Stochastic 

- RSI 

People tend to have their own favourites so have a play around and see what suits you. 

A high percentage of the time strong divergence can be a good indication that the current trend is over at least temporarily. So not only can you take advantage of the divergence swing you can also use it to manage trend trading methods. 

This stuff will work on any time frame but in my experience it is easier to spot on 4H and Daily charts so you may want to start there. 

In the next post I will show you another type of divergence which is extremely accurate and my personal favourite. I will also discuss some little tricks I use to help increase the accuracy of these setups even further. 

Your mission - should you choose to accept it, is to head over to your charts, go back over the history and start looking for divergence. Have a play with a few indicators and see which you prefer. 

Before I go I will leave you with one quick example of how powerful divergence can be when used properly. The chart below is a 4H chart of the EURUSD just before the huge trend reversal. 

Keep a close look out for part 2 (high probability divergence setups) of this series. Have fun & good trading! 

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