Do you trade #Gold? In this video we show you how to apply an easy strategy to use on the commodity.
Watch the video to learn more…
GOLD Daily Trading Strategy
In this video we are going to discuss a Gold Trading Strategy that will help you conquer the markets.
This strategy can be used across other assets not limiting you to just Gold. When trading this strategy it is important to identify the trend of the market and the major daily support and resistance levels. The idea behind this strategy is to be able to predict when an impulsive phase is going to begin.
In this example we are going to look at the most recent set up.
We are looking for low daily range candles, these are candles that look a lot smaller than those around them. We need to see these candles form at support or resistance levels.
In this recent example we can see that the price has formed a low ranging candle at support in an uptrend. This is suggesting that the selling momentum could be ending and that an impulsive phase is forming in line with the trend.
Now we have established that we need to look for a lower time frame entry to try and maximise the risk to reward.
Entry Time Frame
To enter the market we are going to go down to 15 minute time frame. We can either look for the breakout of the low daily range candle highs or wait for a break and retest of the highs as we are looking to go long with the trend.
As you can see we get the breakout of the highs with a strong bullish candlestick. We enter using a buy stop order above the breakout candle high. The stop loss needs to go below a significant low, this should be where you are less likely to get stopped out if the market pulls back first. In this example despite the price moving in our favour initially the market comes back and is in drawdown for a significant period.
We want our stop to be in a place where the trade idea is invalid which means it needs to be in a place where the situation in the market will completely change.
The target for the move should be a significant level or previous swing highs on the higher time frame. In this example the price rallied 368 pips from our entry point which would have led to a 3R profit in just a few days.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.