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Ratios

9 Simple Ratios Every Great Investor Uses - Buffett Included!Forget the hype, headlines, or hope. These 9 financial ratios are what real investors actually use to pick winners, but... P/E? ROE? EPS? 🧐 - What are they, or better yet, WHO are they? 🤯 - How high is “too high”? - Is a low number always good, or just a trap? - Do all industries follow the same rules… or is that another myth? Buffett. Greenblatt. Graham. Lynch. They didn’t rely on vibes — they trusted fundamentals After years of relying on charts, I built a 9-point fundamentals checklist to filter stocks faster and smarter. Now I’m sharing it with real-life examples and key insights to help you spot what really makes a stock worth owning: Easy enough for new investors diving into fundamentals Sharp enough to level up seasoned pros Real enough to avoid hype …but the truth is: these numbers did flag companies like Amazon, Apple, and Nvidia before the market gave them credit. ----------------------------------------------------- ✅ Quick Reference Table Scan the table, then dive into the stories… First Pro Tip: Bookmark this. You’ll check these before every stock pick. ----------------------------------------------------- 📊 1. P/E Ratio | Price-to-Earnings What it tells you: How much you pay for each dollar of a company’s profit. Short Example: A P/E of 20 means you pay $20 for $1 of profit. High P/E? Expect big growth or risk overpaying. Strong: Between 15 and 25 Caution: Above 30 (unless fast growth) Industry Averages: - Tech: 25–40 - Utilities: 10–15 - Consumer Staples: 15–20 - Energy: 10–20 - Healthcare: 20–30 Story: In early 2023, NVIDIA’s P/E ratio hovered around 25, near the low end for tech stocks. Investors who saw this as a steal amid the AI boom were rewarded—NVIDIA’s stock made 4x by the end of 2024 as AI chip demand soared. Contrast that with Tesla in Q1 2025, when its P/E spiked above 40 with slowing sales and Tesla’s stock dropped 50% in weeks. Pro tip: A low P/E is not always good. If growth is weak or falling, it's often a trap. Example: A utility company with a P/E of 30 is probably overpriced. A tech stock with 35 might still be fair — if growth justifies it. ----------------------------------------------------- 🧠 2. PEG Ratio | Price-to-Earnings-to-Growth What it tells you: If a high P/E is worth it based on future profit growth. Whether the earnings growth justifies the price. Short Example: A PEG below 1 means you’re getting growth at a fair price. High PEG? You’re overpaying. Strong: Below 1 Caution: Above 2 Industry Averages: - Software: below 1.5 is solid - Consumer Goods: Below 2 is more realistic - Tech: Below 1 - Consumer Staples: Below 1.5 - Healthcare: Below 1.2 - Financials: Below 1.5 - Energy: Below 1.3 Story: In mid-2022, Salesforce’s PEG was 0.8 (P/E 35, forward EPS growth 45%) as cloud demand surged. Investors who spotted this steal saw the stock climb 130% by the end of 2024. Meanwhile, Peloton in 2023 had a P/E of 20 but near-zero growth (PEG above 3). Its stock cratered -50% as fitness trends faded. Story: NVIDIA’s PEG hit 0.9 in Q3 2023 (P/E 30, growth 35%) during AI hype, a steal for tech (average PEG below 1.2). PEG filters hype. A stock can look expensive until you factor in growth. ----------------------------------------------------- 🧱 3. P/B Ratio | Price-to-Book What it tells you: How much you pay compared to what the company owns (like buildings or cash). Short Example: A P/B below 1.5 means you’re paying close to the company’s asset value. High P/B? Expect strong profits or risk. Strong: Below 1.5 Caution: Below 1 + poor earnings = value trap Industry Averages: - Banks: Below 1.5 - Insurance: Below 1.3 - REITs: Use NAV (aim below 1.2) - Tech: Often ignored - Energy: Below 2 Story: In 2024, JPMorgan Chase’s P/B was 1.4, solid for banks (average below 1.5). Investors who bought enjoyed 100% gains. n 2023, Bed Bath & Beyond’s P/B fell below 1 with collapsing earnings. It looked cheap but filed for bankruptcy that year. Tip: Only use this in asset-heavy sectors like banking or real estate. ----------------------------------------------------- ⚙️ 4. ROE | Return on Equity What it tells you: How well a company turns investor money into profits. Short Example: An ROE above 15% means the company makes good money from your investment. Low ROE? Weak returns. Strong: Above 15% Caution: Below 10% unless in slow-growth industries Industry Averages: - Tech: 20–30% - Consumer Staples: 15–25% - Utilities: 8–12% - Financials: 10–15% - Healthcare: 15–20% Story: Coca-Cola (KO) has kept ROE above 35% for years, a sign of brand power and pricing strength. Eli Lilly’s (LLY) ROE stayed above 25% from 2022–2024, a healthcare leader (average 15–20%). Its weight-loss drug Mounjaro drove consistent profits, lifting the stock 150%+ in two years. Checking ROE trends helped investors spot this winner. Tip: If ROE is high but D/E is also high, be careful, it might just be leverage. ----------------------------------------------------- 💰 5. Net Margin | Profitability What it tells you: How much profit a company keeps from its sales or what % of revenue ends up as pure profit. Short Example: A 10% margin means $10 profit per $100 in sales. Low margin? Tough business or high costs. Strong: Above 10-15%+ Caution: Below 5% Industry Averages: - Software: 20–30% - Retail: 2–5% - Manufacturing: 8–12% - Consumer Staples: 10–15% - Energy: 5–10% - Healthcare: 8–15% Story: Walmart’s (WMT) 2% net margin looks tiny — but it’s expected in retail. A software firm with 5%? That’s a warning — high costs or weak pricing. In 2023, Zoom’s (ZM) net margin fell to 5% (down from 25% in 2021), well below software’s 20–30% average. Pricing pressure and competition crushed its stock quite a lot. Meanwhile, Apple’s 25% margin in 2024 (tech average 20%) remained a cash cow. Tip: Margins show whether the company owns its pricing or competes on price. ----------------------------------------------------- 💣 6. D/E Ratio | Debt-to-Equity What it tells you: How much debt a company uses compared to investor money. Short Example: A D/E below 1 means more investor cash than debt. High D/E? Risky if profits dip. Strong: Below 1 Caution: Above 2 (except REITs or utilities) Industry Averages: - Tech: 0–0.5 - Industrials: 0.5–1.5 - REITs: 1.5–2.5 (manageable due to structure) - Utilities: 1–2 - Energy: 0.5–1.5 Story: In 2024, Tesla’s D/E dropped below 0.3 (tech average 0–0.5) as it paid down debt, signaling strength despite sales dips - a massive rally afterward. Tip: Rising debt + falling profits = a storm coming. Always check both. ----------------------------------------------------- 💵 7. Free Cash Flow (FCF) What it tells you: Cash left after paying for operations and growth investments. Short Example: Apple’s $100 billion cash pile in 2024 funded stock buybacks, boosting shares. Low cash? Trouble looms. Strong: Positive and growing Caution: Negative for multiple years Sector notes: - Tech: Lots of cash (think billions) - Industrials: Up and down, check trends - REITs: Look at FFO (cash from properties), aim high - Energy: Has cash, but swings with oil prices - Healthcare: Steady cash, not too high Story: Netflix had negative FCF while scaling content. Once costs stabilized, FCF turned positive and stock re-rated sharply. Pro tip: Profits don’t mean much without real cash. FCF is often more honest. Cash is king: Companies need cash to pay bills, reduce debt, or fund growth. If FCF is falling, they might be burning through cash reserves or borrowing, which isn’t sustainable. Potential issues : This mismatch could signal problems like poor cash collection, heavy spending, or even accounting tricks to inflate profits. ----------------------------------------------------- 🚀 8. EPS Growth | Earnings Power What it tells you: How fast a company’s profits per share are growing. Short Example: EPS up 10% yearly means more profit per share, lifting stock prices. Flat EPS? No growth, no gains. Strong: Above 10% Caution: Below 5%, flat/negative for 3+ years Industry Averages: - Tech: 15–30% - Staples: 5–10% - REITs: 3–6% (via FFO growth) - Healthcare: 10–15% - Financials: 5–10% - Energy: 5–15% (cyclical) Story: In Q1 2024, NVIDIA’s forward EPS growth of 30% (tech average 20%+) fueled a rally as AI chips dominated. Checking forward estimates helped investors avoid traps like Intel, with flat EPS and a drop. Pro tip: A stock with flat EPS and no dividend? There’s no reason to own it. ----------------------------------------------------- 💵 9. Dividend Yield | Passive Income What it tells you: How much cash you get yearly from dividends per dollar invested. Short Example: A 3% yield means $3 per $100 invested. High yield? Check if it’s sustainable. Good: ~3–4% Red Flag: Above 6% with a payout ratio above 80-90% Industry Averages: - Utilities: 3–5% - REITs: 3–6% - Consumer Staples: 2–4% - Tech: 0–2% - Energy: 2–5% ----------------------------------------------------- 💡 Final Thought: How to Use All of This Top investors don’t use just one metric. They look at the whole picture: Good growth? Check PEG. Good profits? Confirm with ROE and margin. Safe balance sheet? Look at D/E and cash flow. Fair valuation? P/E + FCF Yield + P/B. Real power = Combining metrics. A company with P/E 15, PEG 0.8, ROE 20%, low debt, and positive FCF? That’s your winner. A stock with P/E 8, but no growth, high debt, and negative cash flow? That’s a trap. ----------------------------------------------------- Real-World Combos 🎯Winners: Tech Gem: P/E 20, PEG 0.8, ROE 25%, D/E 0.4, growing FCF, EPS 20%+ (e.g., NVIDIA 2023: AI-driven growth, stock soared). Energy Steal: P/E 15, P/B 1.5, FCF positive, Dividend Yield 3.5% (e.g., Chevron 2023: Cash flow king). ⚠️Traps: Value Trap: P/E 8, flat EPS, D/E 2.5, negative FCF (e.g., Peloton 2023). Overhyped Tech: P/E 50, PEG 3, Net Margin 5%, D/E 1.5 (e.g., Rivian 2024). ----------------------------------------------------- 🚀 Share your own combos! What do you personally look for when picking a stock? If you spotted something off in the numbers, or have a valuable insight to add — please, drop it in the comments.👇 💡 Let’s turn this into a thread that’s not just good but superb and genuinely helpful for everyone. ----------------------------------------------------- Final Thought “Buy great companies at fair prices, not fair companies at great prices.” – Warren Buffett This guide gives you the map. Charts, tell you when. These numbers tell you what, and why. And this post? It’s just the beginning! These 9 metrics are part one of a bigger series I’m building — where we’ll go even deeper, with more advanced ratios, smarter combos, and real case studies. If this guide helped you see financial numbers a little clearer, there’s a good chance it’ll help your investor friend too, especially if they’re just starting their journey...🤝Share it with them! I built this as much for myself as for anyone else who wants to get better.👊 If you made it this far — thank you! 🙏 ...and super thankful if you hit "The Boost" on this post 🚀 Cheers, Vaido
NASDAQ:TSLAEducation
by VaidoVeek
2
Barrick Gold $GOLD | On The RadarToday on the radar, Barrick Gold Barrick Gold has attracted some attention as major investors, including recently the notable Stanley Druckenmiller, have taken significant positions. With these influential players entering the fray, while the gold market experiencing remarkable momentum, the question emerges: Is this the right moment to buy? Well, let's dive on it and look at some fundemantals, some metrics and some technicals. The fundemantals Gold has exhibited remarkable resilience, maintaining stability despite the backdrop of high interest rates. It has remained relatively stable around the $2000 level for some time now and recently experienced a notable surge in momentum. Meanwhile, the mining sector has faced challenges and has been trading at discounted levels. This disparity may suggest a lag in market perception, particularly regarding the potential for a flight to safety and subsequently, a shift towards safety asset producers. The world economy is hitting a rough patch, with recessions popping up globally. While the U.S. is trying for a soft landing and celebrating record-high stock markets, there are some conflicting signs from key economic indicators. This divergence might resolve soon, depending on how things pan out in the real economy, possibly prompting a move towards safer assets. Add the fact that central banks globally are bullish on gold, and the BRICS nations are also showing a keen interest, aligning with the broader trend of moving away from the dollar. So, with gold demand on the upswing, and considering the mining sector's relative underperformance compared to the gold price, there seems to be a noteworthy opportunity for those looking to go long on both gold and the mining industry. The metrics Now, let's explore some metrics to determine if this company is fairly valued, discounted, or possibly overpriced. Right from the start, Barrick Gold stands out among mining companies for its exceptionally clean balance sheet. They have great cashflow, manage their debt and liabilities quite well, which could be one of the reasons drawing significant interest from big and famous investors. Notably, the company consistently beats expectations. Price/Earnings Ratios: Trailing P/E: 22.04 Forward P/E: 18.05 The forward P/E is lower than the trailing P/E, indicating that the market expects future earnings growth. The P/E ratios suggest a moderate valuation compared to the company's earnings. Price/Sales and Price/Book Ratios: Price/Sales: 2.44 Price/Book: 1.19 Both ratios suggest relatively low valuation compared to sales and book value. However, the interpretation should consider industry benchmarks and historical values. Profitability Margins: Profit Margin: 11.16% Operating Margin: 13.08% The company has healthy profit margins, indicating efficient operations. Liquidity and Solvency: Current Ratio: 3.16 Total Debt/Equity: 16.32% The company has a strong current ratio, suggesting good short-term liquidity. The debt/equity ratio is moderate, indicating a balanced capital structure. Growth and Financial Performance: Revenue Growth (yoy): 10.30% Quarterly Earnings Growth: Not available Positive revenue growth is a good sign, but it's important to consider the earnings growth trend. Cash Flow: Operating Cash Flow: $3.73 billion Levered Free Cash Flow: $675.75 million The company generates healthy operating and free cash flows. In summary, the stock seems to have reasonable valuation metrics, strong profitability margins, positive revenue growth, and healthy liquidity. Compared to some peers, Barrick Gold appears to trade at a slight discount. Over the past year, there have been noteworthy insider transactions involving both selling and buying activities. However, it is particularly noteworthy that the board of directors has recently engaged in a substantial buying spree. This prompts the question: What insights are they uncovering? The Technicals Now, let's delve into some technical analysis—the very reason we're all here and appreciate TradingView. Firstly, we're entering a week filled with significant economic data releases. Additionally, the gold market has experienced a prolonged uptrend. This is certainly a factor to keep in mind in the upcoming days/week, as increased volatility and potential corrections may manifest. Bearing this in consideration, let's explore how we can reflect these dynamics on the chart. Examining the daily chart over the past 1.5 years and scrutinizing the price structure, a distinct pattern emerges. Following a decline from $25, the price has exhibited a wide-ranging behavior. Notably, it consistently rebounds from the $14 range, suggesting a possible floor or bottom. Taking a more extensive view, this aligns with a monthly/yearly support level. The overarching support, coupled with daily resistance, hints at a potential continuation of ranging price action, possibly leading to a convergence or apex point. In such a scenario, there could be multiple buying opportunities in the coming months, facilitating the accumulation of a robust long position—unless a market shift and strong momentum occur. Examining the daily chart closely reveals a well-defined descending channel without a distinct apex for reference. Despite the recent breach of prior lows, it's crucial to interpret this cautiously, as breaking one low doesn't automatically signal immediate concerns, especially when the price remains above the monthly low. It could be indicative of a failed breakout. In the event of a market correction this week, these price levels might actually serve as a reliable range for initiating long positions, with a carefully placed tight stop around the $13 range. A tool I find particularly useful is the fixed volume profile, which proves valuable in identifying specific price ranges characterized by high volume. This method unveils potential breakout zones, support and resistance levels, and even target zones. I typically overlay these profiles onto specific structures, such as from top to top or bottom to top, to gain a more insightful perspective on volume distribution within the structure. A noteworthy observation is the concentration of the highest volume around the $16.50 range. In my approach, a breach of this level, followed by a potential bounce and continuation, could provide valuable insights into the prevailing momentum. A correlation exists with the recent Point of Control (POC) and some previous lows in this range, making it a potential local bounce zone worth monitoring. Beyond this point, significant price zones to consider include the $17.50 range and the $19 range. The latter could serve as a conservative initial target, and subsequent analysis of the broader circumstances will help determine if the price can break away, potentially sparking a major rally. If we manage to capitalize on a correction and enter at a lower current price, achieving a buy-in below the $15 range, could yield a 25% return on investment (ROI) or potentially even more, depending on market conditions. Observing the regular volume, there's a noticeable dip that occurred last year, particularly during the summertime. While this dip isn't particularly surprising or highly meaningful, what stands out is the consistent increase in the daily average volume. Another indicator I find valuable is the Hull, essentially an alternative moving average. It's currently on the verge of crossing and transitioning to green on the daily chart. While this doesn't carry significant weight on its own, it can certainly contribute to the decision-making process. Even if the crossing occurs and the indicator turns green, the price may still experience a pullback. The intriguing aspect will be observing the depth of the correction and whether the price manages to sustain the indicators in the green zone. Ideally, a bounce on the indicator could signal a retention of upside momentum. It's crucial to note that technical analysis involves a significant degree of subjectivity. The paths indicated on the chart with the blue dotted lines are not predictions; instead, they represent favorable scenarios to monitor. The outcome will hinge on various scenarios and how they unfold. Despite the inherent subjectivity, the fundamentals are sound, the metrics and ratios look promising and momentum seems to be evolving. And as always, please remember that this analysis is for informational and recreational purposes only. It does not constitute financial advice. Draw your own conclusions based on your assessment.
NYSE:BLong
by GoldvalleyCap
On Forex should I buy stop oil or stop gold instead?Suppose I am a forex trader who trades both gold and oil among others. I am aware that gold is now rising and oil has already risen. Should I sell out of oil and buy gold? Here I use TradingView tools to give guidance to the best approach. On the daily chart, I have dressed out the chart with a long anchored VWAP and its deviation lines along with the price momentum oscillator and the ZL MACD. The ratio is descending from a double top in March and May and trending down through the upper VWAP lines. My analysis is that gold will continue to fall relative to oil until a potential bounce off the mean VWAP. My analysis is that the ratio will drop for a bit. If I need cash out of my positions. I should sell gold. If I have cash to deploy into my positions, I shoudl buy more oil. Once the ratio bounces if in fact it does on watch. I should do the opposite. This idea I believe demonstrates the power of TV tools in informing a trader towards high value decisions in trading.
OANDA:XAUUSD
by AwesomeAvani
📊 6 Ratios Investors MUST Know📍The current ratio is a financial metric used to assess a company's short-term liquidity and ability to cover its immediate obligations. It is calculated by dividing a company's current assets by its current liabilities. A higher current ratio indicates a better ability to meet short-term financial obligations. 📍The price-to-earnings ratio is a valuation metric used to evaluate the relative value of a company's stock. It is calculated by dividing the market price per share by the earnings per share. The P/E ratio provides insights into investor sentiment and expectations regarding a company's future earnings growth. A higher P/E ratio often suggests that investors anticipate higher future earnings. 📍Return on equity is a profitability ratio that measures how effectively a company generates profits from shareholders' equity. It is calculated by dividing net income by shareholders' equity. ROE provides insights into a company's efficiency in utilizing shareholder investments to generate profits. A higher ROE indicates better profitability and efficient use of equity. 📍The debt-to-equity ratio is a financial leverage ratio that indicates the proportion of a company's financing that comes from debt compared to equity. It is calculated by dividing total debt by shareholders' equity. The D/E ratio helps assess a company's financial risk and its reliance on debt for operations and growth. A higher D/E ratio implies higher financial leverage and increased risk. 📍The price-to-book value ratio is a valuation metric that compares a company's market price per share to its book value per share. Book value represents the net asset value of a company, calculated by subtracting liabilities from assets. The P/B ratio is used to assess whether a stock is undervalued or overvalued. A lower P/B ratio may indicate an undervalued stock. 📍The price/earnings to growth ratio is a valuation metric that combines the P/E ratio with a company's projected earnings growth rate. It is calculated by dividing the P/E ratio by the earnings growth rate. The PEG ratio helps investors evaluate a company's stock in relation to its growth prospects. A lower PEG ratio may suggest that the stock is relatively undervalued compared to its expected earnings growth 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
Head & Shoulders Top Completed, USO/SPXAccording to TA rules, the ratio has completed the pattern with a Complex Right Shoulder (two peaks). Those these means that the SP:SPX should breakout from that downward trendline? I don't know, but probably. Or those it means that energy stocks should finally follow oil prices? Maybe, it is what normally had happend. What I'm seeing is more stocks going up, even though some breakouts aren't working as smooth as it should. Nontheless, I just follow price. This ratio is just another indicator, let's wait and see what happens.
AMEX:USO
by dpuleo19
2
PCC Ratio is looking BullishI have an alert for when the 10-day moving average falls below .8. The PCC spends most of its time between.8 and 1 when the 10 moving average falls below .8 you can count on a bearish reversal in the market. As of right now, we are above that with plenty of room. The reason why I bring this up now is that if we mid-term rally I'm looking for a strong bull push followed by a reversal before we trend. Setting an alert on the PCC for .8 and 1 crossovers will keep you on the right side of the market.
USI:PCCLong
by Optionism
The growth vs value ratios are making higher lowsAt the above pane is the SP:SPX making new lows; I really thoght that the low was already made. Then in red in Small Cap Growth vs Small Cap Value (IWO/IWN), in green is the S&P Growth vs S&P Value (SPYG/SPYV) and in yellow is the Consumer Discretionary vs Consumer Staples (XLY/XLP). There are a lot more but these are the most common ratios to evaluate what kind of stocks are leading. And if you want a bull market, then growth should lead right? Well, we are seeing the first steps to it. Look how all peaked before the S&P 500 and now are making higher lows. But remeber, first steps. Look for stocks that are making 6mo highs and 12mo highs. These should be the ones to lead the next cycle. NYSE:DV , NASDAQ:DGII & NASDAQ:AEHR are in the top of my watchlist. What are yours?
AMEX:SPYGLong
by dpuleo19
11
Where are you now? The mean of volatility adjusted indexes.The summary: Stocks fell ("Faded"?) out of the main upward channel. Bulls can hang there hats on the ATR that has not confirmed a reversal. Chart shows the mean of 3 US stock indexes divided by their respective volatility index: SPX / VIX , NDQ / VXN , DJA / VXD. This is one approach to putting all 3 on a single scale and is conceptually similar to Z-score, Sharpe ration and Normalization, to name a few** Getting all 3 on the same scale is useful for both comparison and, as in the present chart, aggregation. (SPX appears above on top for reference.) Summary: Last session "stocks" fell out of the main upward channel. They have also fallen bellow the long term median (red dots). However, there are bullish features as well: ATR indicator: Typically inverse stocks Were *not* seeing the same "break out" (added Regression channel +/-2STD) It is not yet in free fall and there's plenty of structure to the left for support and pullbacks. Notes: ** There are issues with taking the mean of any of these statistics. For example two Zscores of 0 and 3. It's true that their mean is 1.5 but there are very few valid conclusions one can draw from that outcome. It will have a "smoothing" effect (mean reversion) which is not entirely undesirable for our purposes.
SP:SPX
by gb50k
Leading ratio to spot bull marketsThe eternal battle, growth vs value. This ratio AMEX:SPYG / AMEX:SPYV has helped in the past in spotting peaks and throughs of the SP:SPX . But for the las few years, is better at timing bottoms. It did in the 2018 correction, in the Covid crash of 2019 and is doing it now. The ratio starts to go up just before the market does. Because that's what a bull market is, high risk assets outperfom low risk assets. In healthy markets, Growth outperfomrs Value! As for now, I'll pay close attention to determine the strength of the market. If this ratios does well, the market should do well.
AMEX:SPYGLong
by dpuleo19
SPX ~6000 if this time is not differentThe SPX chart has 2 goals and one constraint: Demonstrate the VIX / VVIX ratio as an inverse momentum indicator for SPX. The VIX is risk adjusted" by VVIX and the ratio is more useful than VIX alone. "Useful" is similar to 'Statistical Power' and means less data required to identify smaller changes amidst higher volatility. Suggest that an ATH of SPX 6000 is "not unreasonable" considering the pattern and magnitude of prior large moves (corrections, bear markets, and very large dips) . . . Unless this time is different.
TVC:VIX
by gb50k
2
I'm getting more interested in ratios, so here is gold/btcAs always, this is just me thinking out loud. If we consider the fiat/usd deflation narrative and also the idea that btc will be the digital gold or its digital equivalent, then the ratio of gold / btc should be relatively unaffected by the loss of value from usd. I would like to track this for a while with this chart, which has the horizontal lines as 12 month levels, which could provide some s/r. also the trend lines since the beginning of btc. as we see the ratio has managed a few times to break out to the upside of the general trend, in times when the btc price saw exponential growth. I also marked the red line as this lines seems to be reactive and it's interesting that we are just knocking on it. I might also make a chart with fibs instead of trendlines. I'm generally interested in the relationships of gold, silver, btc, eth and usd. maybe it would be interesting to also add a second fiat to the mix, like chinese yuan, or russian ruble.
TVC:XAUBTC
by ein.selbst
2
Bitcoin $666k by Dec? (I know it sounds crazy) Happy New Year!Let me start off by saying I hold a very small position in Ethereum, and do not think that Bitcoin will be the currency of the future. However, I came across this built-in ratio and couldn't resist playing around with Fibonacci time-zones to see if anything interesting popped up. The (potential) results I came across shocked me, so I thought I'd share them here and get thoughts from the community. This is a Logarithmic chart of the ratio between Gold and Bitcoin. As we can see, there is a very clearly defined trend at play here. This trend saw a false breakout to the upside, which we can call the Covid anomaly. Other than that, it seems pretty clear that Bitcoin is being driven up as gold is being systematically crushed. To add to that, applying a Fib time-zone to the initial drop from Nov 2011-2013 as Gold came off its highs almost lines up perfectly with future pivots (O_o). This is where things get really interesting. While my macro outlook calls for a major commodities bull market, I see gold initially rallying to $2500 this year, and silver to $42.70 before an engineered pullback to shake out retail investors before the true multi-year bull market. During this time, we are likely to see a flight into BTC/other cryptocurrencies, if it's not also being systematically crushed at the same time. Crypto bulls say it can't be crushed, so let's assume they are correct for the sake of this analysis. The results show the following: -XAUBTC Ratio Bottom = ~0.00377 -Ratio Bottom Date: ~Dec 12, 2021 -BTC Price if Gold @ $2500 = $663 130 -BTC Price if Gold @ $1700 = $450 928 I understand that there is a big range for the target, but it's rooted in analysis and dependent on the spot price of Gold. Curious to see what other people's targets are, and what methods you used to calculate them. Thank you for reading and happy trades! TL; DR: This post is NOT INVESTMENT ADVICE. It is simply an interesting projection for calculating a bullish target for BTC using Gold price.
TVC:XAUBTCLong
by bubblegumman
Bullish on BTCBears were rejected multiple times and have so far kept the support at $10k price range. Two possible pattern were formed on 1H timeframe, signaling at a possible short-term reversal of downtrend. If prices stay above the shoulders' lowest value, it is highly likely to continue up. Judging by the BTCUSD/SPX chart below, we are testing the downtrend channel in which we've been stuck since 2018. More correction is absolutely possible, so below $9.8k I'm bearish on the short term.
Long
by UnknownUnicorn10172642
XRPLTC - Which one one will lead the way?Thought that this may be an interesting chart to draw as I expect both altcoins to make substantial gains in terms of BTC ratio. The key take-home over here is that during every altcoin cycle, XRPBTC has always increased in ratio to BTC before LTC. A long-term strategy is to use XRP as an indicator of when LTCBTC will increase, as LTC has always lagged behind XRP In terms of technicals: MACD on the monthly timeframe is bullish in favour of XRP over LTC however stochastic RSI diverges, however, this is fine as it can go sideways for an extended period of time. A potential bullish ascending triangle is in play but will have to see how this plays out. In the meantime, I expect a rise in both, with XRP leading ahead of LTC.
by lightknight
Why Cardano Could See a 100% Run!This is a very simple analysis based on ratio analysis. Based on the last several waves down ADA saw a 81%, 80%, and most recently, a 79% retracement. These ~80% retracements were then followed by a 150% and 132% bounce. Therefore, if this pattern continues we should expect ADA to make a nice run to the 800 sat level. Coming to about a 100% return from the 400 sat level. The Plan: In the coming days/weeks ADAXBT should form a nice bottom pattern to help support this analysis. I plan to gradually average in on retracements. Stop/Loss: 355 sats Primary Target: 810 sats I hope you found this analysis interesting and maybe even a little helpful! I wish you the best of luck!
ALong
by oh92
6
BTC Longterm Ratio Analysis [Some Maths]---------------------------------------------------------------------------------------------------------------------------------------- -------------------------Observation------------------------------------------------------------------------------------------------- Price Increase 1: 3,291% Price Increase 2: 1,641% (50% less than Increase 1) -------------------------Prediction------------------------------------ Price Increase 3: 820% (50% less than Increase 2) ---------------------------------------------------------------------------------------------------------------------------------------- -------------------------Observation------------------------------------------------------------------------------------------------- Price Drop 1: -94% Price Drop 2: -83% -------------------------Prediction------------------------------------ Price Drop 3: -88% (Average of Drop 1 and 2) ---------------------------------------------------------------------------------------------------------------------------------------- -------------------------Observation------------------------------------------------------------------------------------------------- Bull Bars 1: 94 Bars Bull Bars 2: 249 Bars Bull Bars 3: 356 Bars -------------------------Prediction------------------------------------ Bull Bars 4: 397 Bars (94 to 249 = 164%, 249 to 356 = 43%, 164% to 43% = -73%, 43% - 73% = 11.6%, 356 + 11.6% = 397) ---------------------------------------------------------------------------------------------------------------------------------------- -------------------------Observation------------------------------------------------------------------------------------------------- Bear Bars 1: 51 Bars Bear Bars 2: 138 Bars -------------------------Prediction------------------------------------ Bear Bars 3: 234 Bars (170% increase) -Hawk
BNC:BLX
by spyxo2x
2
YM Wednesday - Buyers are coming inPrice tried to trade lower to create a new structure low and to retest the support levels at ~24209 and futher down at ~23980. While waiting for yesterday's sell, I was expecting a rotation and a short-entry between the 50% and 61.8% Fib Correction. After the sellers came in around there to correct weak, buyers dominated and traded price higher creating immediate new structure highs. Looking at the harmonics, price extended a 1 to 1 target in the immediate order flow and traded above areas of good selling structure. The sellers did not show up and look weak compared to the buyers momentum right now. Let's see if price breaks through the last high and resistance levels at ~25000. Still flat for now.
CBOT_MINI:YM1!
by Kls_Kln