Golden Ropes

The Gold Standard of Trend At A Glance

The Golden Ropes consists of the 50 and 200 EMAs (exponential moving averages). This classic combination of EMAs are typically used for quickly identifying trends. When the EMAs begin to diverge, price tends to be forming a trend either to upside or downside.

An example of the Golden Ropes on a bare range bar chart to more easily identify trend or consolidation in price action.

The Golden Ropes are typically used on the larger "higher time frame" charts such as the Tide and Wave charts, to assist in identifying if a market is in a longer term trend or not. This is part of the Order Of Operations

This image shows the Rivers of Life indicator in isolation on a bare range bar chart, which highlights a zone around each of the Golden Ropes (not pictured). The Rivers Of Life indicator is intended to be used with the Golden Ropes.

Here's an example where the Golden Ropes and Rivers Of Life are used on a range chart to visualize trends and consolidation areas.

Examples: Golden Ropes & FOMC

Coined by Vinny E. Mini, the Golden Ropes are an "Area of Safety" - Price often "hugs" the inside or around the Golden Ropes prior to the FOMC meetings, which tends to trap both buyers and sellers.

Here's an example of how price tends to hug the Golden Ropes before the FOMC news release.

Here's an example of the post-FOMC news impact on the market, which can result in a breakout in either direction.

Video Tutorial

WATCH: Vinny E. MIni briefly discusses the FOMC rules and its relationship to the Golden Ropes in this short clip.

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