By adding a long term moving average to the chart, you watch whether the DGR is above or below its moving average.  I use a 600 day moving average.

When the DGR is above the moving average I own stocks and when it is below its moving average I own gold.

Basically, you want to own stocks when the ratio is rising and you want to own gold when it is falling.   By using a long term moving average you buy stocks when the DGR crosses above the moving average and you sell your stocks and buy gold when the DGR crosses down through the moving average.  Otherwise you do nothing and hold your positions.

To be successful using the DGR, you can not second guess it.  No matter what CNBC is telling you, let the DGR be your guide.  If it is rising stay in stocks and do not let emotion steer you astray.