This XAU Indicator is Game Changing

[0:00]I know where gold is going every single day just by using this simple technique. And it makes trading. Times a great trader, by the way. Gold feels so easy. It generally feels like there's a glitch in the markets. Like, this is how much money I've made in the past year just because of this one simple confluence. So whenever you're looking to take a trade on gold, you first need to look at how DXY is moving, because you should already know by now that gold and DXY have an inverse correlation. So when DXY moves bullish, gold moves bearish. But what should you do if gold and DXY are both moving in the same direction? Well, first you want to look for a mismatch between the volume of gold and DXY, where on DXY we have this big push up, but on gold, it's just really low volume price action. So we needed this massive move on DXY, just for gold to pretty much move sideways. This means if we have a small pullback on DXY, we can expect a massive push on gold. And so if we just go back and look for a little correction on DXY, you can see that gold has had this massive push up just from the small little pullback on DXY. Okay, so this is really good information. What's really nice is I'm actually going to take the transcript from this and bring it over to Quant and build an indicator based on this idea. I'm going to bring that over to Quant and say, I want to build an indicator around this idea. I'm going to paste in that transcript here. I'm just going to delete the hook. I'm going to add something here at the end. So to add context to what we're doing, I just said, so Quant knows. So we need a unique way to show when DXY is making a big move while XAU is just trading sideways. Then a signal would occur when DXY retraces back from that big move. So I'm going to send that and let's see what it builds. All right, we got our code here. Gold/DXY mismatch Z-score normalization, mismatch detection, big push, gold sideways, and then it triggers when it detects that mismatch. So I'm just going to copy that code here, go over to TradingView, go to Pine Editor, I'm going to paste that in, and let's see what we got. All right, cool. So we got some cool signals here. So far, pretty decent. Got some short signals there. Very nice short signal there. To be honest, I'm not a huge fan of how it's signaling these longs during shorts as well. So I feel like we could filter out these signals a little better, so I want to add something to help with that. I'm going to go back to Quant and describe what I want. Okay, what I said was, this is looking very promising. I want to add a better confirmation to this indicator. Can you figure out a good confirmation system that aligns with this indicator to eliminate false signals? Also, add more information on the dashboard on the DXY and XAU correlation. Don't change anything, just add these things. All right, so we have our updated code here. I'm just going to copy that and then bring this over, and let's see if we got the filter and dashboard. Wow. All right, this actually filtered it really well. Remember, we had all those buy signals down here. Now we just have shorts. We also have a correlation status and the correlation information on the dashboard. This is looking very, very promising. There's a long, let's go and see another one. Pretty decent moves off those signals. I'm actually very satisfied with what we've built so far. If you want to build indicators just like this, comment Quant, and I'll send you the link.