One of my favorite tools for assessing the risk are the Stoller Average Range Channel or Starc Bands developed by the late Manning Stoller. Therefore when prices are above say a monthly or weekly starc+ band than the risk is high in buying at that level. Those of you who have followed the gold market may remember when it moved above $1000 for the first time in March 2008. On the monthly chart of comes gold futures I have plotted the 2XATR starc bands (in green) and the 2.5ATR starc bands in blue. In a Forbes article published on August 18, 2011 “Gold Bulls – Protect Your Profits” I commented about the “historical high risk buy level of current gold prices basis the starc band analysis”.

Source: Forbes October 27, 2017 21:22 UTC