How to forecast gold prices? Two expert technicians discuss methods
The technical indicators remain bullish for gold, according to both Gary Wagner, editor of TheGoldForecast.com, and Jim Wyckoff, senior analyst at Kitco.
Although they arrived at the same conclusion, the two technical analysts used entirely different methodologies: Wagner is a proponent of the Japanese candlestick chart reading method, while Wyckoff focuses more on trendlines.
“Japanese candlesticks use the same four data points: open, low, high, and close. Rather than a bar chart, they simply draw a rectangle between the relationship between the open and close; close is higher, it’s green, close is lower, it’s put in red. So visually, while you’re looking at the same data, there’s more information in terms of visual cues,” Wagner said.
Wyckoff’s analysis combines several technical elements.
“In the past forty years, I’ve basically kept my teeth on the bar charts, so I stick with them. The powerful trading tools that I follow closely are trendlines, the nearer term or longer term price trend, depending on what timeframe I’m looking at. I also consider myself a student of the market, so I study the psychology, markets getting overbought, oversold, a herd mentality, too many traders getting on one side of the boat, so I tend to incorporate all of that into my analysis,” Wyckoff said.