Your Offshore Guide

TECHNICAL GUIDELINES FOR ARBITRAGE DEALING

1. Should tael gold be long against loco London gold, US dollars are long. The corresponding amount of US dollars should be sold against HK dollars.

2. Should tael gold be short against loco London gold, US dollars are short. The corresponding amount of US dollars should be bought against HK dollars.

3. Should the price go up against increasing open-interest, new buying is evident. The trend is bullish.

4. Should the price go down against increasing openinterest, new selling is evident. The trend is bearish.

5. Should the price go up against declining open-interest, shorts are off-setting. The situation is technically weak.

6. Should the price go down against declining openinterest, longs are squaring off. The situation is technically strong.

7. Should the price go up against increasing volume, either shorts are squaring off or longs are buying. The trend is bullish.

8. Should the price go down against increasing volume, either longs are squaring off or shorts are selling. The trend is bearish.

9. Should the price go up against declining volume, buying pressure is diminishing. A downside reaction is imminent.

10. Should the price go down against declining volume, selling pressure is diminishing. An upside reaction is imminent.

11. Should the price go down against increasing open interest and increasing volume, a major downside reaction is imminent. The situation is technically very weak.

future prospects



glossary relating to gold

Related websites

 

links