Bullion Power Indicator

This indicator tracks leveraged gold mining ETFs (NUGT, JNUG, DUST, JDST) to measure bullish vs bearish strength in the bullion sector. Uses a normalized approach to visualize sentiment shifts.
This indicator oscillates between positive (green) and negative (red) zones.

• Green areas indicate bullish sentiment (NUGT + JNUG stronger than DUST + JDST).
  
• Red areas indicate bearish sentiment (DUST + JDST stronger than NUGT + JNUG).
  
• The background shading corresponds to the indicator’s color, providing a visual cue for trends.
  

Example of Indicator Use

• Example 1 (Bullish Phase - July 2024)

Around July 2024, the indicator turned green, meaning bullish miners (NUGT, JNUG) were outperforming bearish ones (DUST, JDST).
This aligned with a price uptrend in gold, signaling a strong bullish sentiment in mining stocks.

• Example 2 (Bearish Phase - November 2024)

In November 2024, the indicator turned red, reflecting a shift to bearish sentiment.
During these periods, gold prices also faced a correction or consolidation.
This indicated that leveraged bearish ETFs (DUST, JDST) were stronger than bullish ones, warning of potential weakness.

Conclusion

• This indicator effectively captures sentiment shifts in leveraged mining ETFs, giving insights into gold market strength.
  
• Traders can use it to confirm gold price trends—if gold is rising and the indicator is green, it's a strong bullish confirmation.
  
• Divergences can also be useful—if gold is rising but the indicator turns red, it might signal weakness ahead.