When the +DI line crosses the -DI line and the average trend indicator line, it is an obvious upward trend, and there is a huge room for growth. Investors should follow up quickly, or they will lose a good profit opportunity.

2. Use DI indicators to judge the consolidation market.

ADX-ray is generally below 20, above 40, and above 25, which can be judged as an upward trend expansion. It is more effective to cooperate with MA and can grasp the market.

If ADX falls or consolidates, RSI can be used to match the application.

3. It can be judged that it peaked in the medium term.

Finding the top and bottom is the wish and idea of many people. This indicator may guide that when the gold price rises for a period of time, when the +DI line is higher than the -DI line, and the gap between the two lines is large, and the ADX line rises above these two lines, and there are signs of falling back, this can be regarded as a reliable peaking signal;

4. It can be judged that it bottomed out in the medium term.

When -DI is higher than the +DI line and the distance is large, and ADX shows signs of falling above these two lines, this can be regarded as a reliable bottoming signal.

Section 1 Principle and Calculation Method of RSI Index

RSI index principle

Relative strength index RSI is a technical index to analyze and judge the strength of buying and selling power of long and short parties in the market by comparing the fluctuation range of a single gold price or the index fluctuation of the whole market in a period of time according to the principle of supply and demand balance in the gold market, so as to judge the future market trend.

From the principle of its construction, the RSI indicator is the same as MACD, KDJ and other trend indicators, but different from MACD and RSI, the RSI indicator is to find out the strength of the closing price of a single gold at several times first, rather than directly processing or smoothing the closing price of gold.

Relative strength index RSI is the ratio of market rise and rise plus fall in a certain period of time. It is a quantitative and graphical embodiment of buying and selling power, and investors can predict the future trend of gold price according to the market changes and trajectory it reflects. In practice, people usually combine it with moving average to improve the accuracy of market forecasting.