We measure Gold sentiment based on key words frequency that arise on the internet every hour. The key words are selected based on their Bullish or Bearish likely impacts. Each word receives a weighting.
The result using our proprietary algorithm is a Hanke-Cofnas Gold Sentiment Score.
The Gold Dial visualizes the Hanke-Cofnas Gold Sentiment Score.
It has a range from -15 to +15
There are many ways to apply the Hanke-Cofnas Gold Sentiment score to trading Gold. We offer special training in this area. A key aspect of the Hanke-Cofnas Gold Sentiment Score is how extreme the score is.
We have found, after observing over 8000 hours of scores that when the Scores reach an extreme value beyond -10 and +10, Gold prices tend to start reversing. This phenomenon is known as Regression to a Mean.
The alerts directly apply to Spot Gold (XAUUSD), and to the Gold Active Futures Contracts.
The Trade Alerts Per Day will vary due to data news events and market volatility. However, 4 new trades per day is common.
The Hanke-Cofnas Gold Sentiment Score is hourly and tracked from Monday Morning 12 AM GMT time to Friday at NY Session Close.
However, our Trading Alerts start at 12 AM EST each day and close at 4PM EST .
Gold Sentiment Turning Points are points in hourly sentiment data that exhibit extreme values. Our algo detects these points based on pattern recognition and generates Buy or Sell orders.
Our alerts are based on Sentiment Turning Points. Sentiment acts like a Barometer and accumulates buying or selling pressure. Therefore, there is time to follow the alert-up to 45 minutes.