Trading Gold Stocks

Mean reversion trading is a proven technical trading strategy that suggests if prices go up or down too fast, there is a good chance that they return toward the average. In the table below gold stocks that their recent performance greatly differs from the historical average are marked as overbought/oversold. Use this indicator to enhance your trading strategy and monitor the stocks in your portfolio.

The overbought/oversold signal is calculated and updated at the end of each trading day. During trading hours you can monitor how stock prices respond to the previous day indicator. Changes to fundamentals of a company could result in a massive stock purchase or a big sell-off. In this case there is less probability that prices return to mean.