With the possible trend lines for gold (GC1!), it looks like we saw a fake break out of that range today, culminating in a doji candle. This on its own is not a good enough buy signal - granted, but if we overlay the price of silver (SI1!), we see that silver has shown a high correlation with gold but with higher peaks and troughs.
With gold now at a point which I believe could be a new trough, silver has not yet kept up with this move.
Therefore, I plan to buy GC1! and sell SI1!, with the view that silver has yet to get to its more extreme move lower to keep in line with its relationship with gold, and that gold has potentially reached a turning point in its price movement and is about to head up in price.
I will exit the silver trade @ the trough of the gold move and aim to exit the gold trade once it reaches the top of the trending channel.
With gold now at a point which I believe could be a new trough, silver has not yet kept up with this move.
Therefore, I plan to buy GC1! and sell SI1!, with the view that silver has yet to get to its more extreme move lower to keep in line with its relationship with gold, and that gold has potentially reached a turning point in its price movement and is about to head up in price.
I will exit the silver trade @ the trough of the gold move and aim to exit the gold trade once it reaches the top of the trending channel.