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10 Top Gold Trading Tips:


In 2013 I did some serious gold study. I wanted to learn the ins and outs of what seemed to be a
very challenging but potentially rewarding market to trade. What did I find? Here are some of
my notes from my studies:

Gold has a huge daily range. Daily ranges of 300-500 pips are not uncommon and the
average small day is 160 pips.

Gold is volatile: Gold can easily swing 80-100 pips within minutes. Large reversals are
common. An order that looks very good can turn into a loser quickly and an order in
draw-down can also go into profit very quickly. The speed by which the market can
move and change direction requires very good pre-planning or very quick decision
making. If you wait too long to see if price will reverse after touching an s/r, you can
lose most of your gain. Then again, many times, it blows right through the s/r after a
short pause making your win bigger.

Split Personality: Gold also can move a very big distance without looking back.
Although pauses are made at important s/r, pullbacks on the best moves simply do not
occur. It is difficult to tell when gold is swinging and when it is running until you
see the actual moves

Gold Respects S/R EXTREMELY well: This is a wonderful feature. Gold can be
technically traded accurately and consistently from this aspect. Pivots, manually placed
horizontal s/r and trendlines, and Fibs are very well respected

Waiting for candle close is MANDATORY for decisions, especially entry: Price can
reverse a long distance in the last few minutes of an hourly candle, a hour candle and
certainly a 4-hour candle. Jumping into a trade you think is going to close through a
certain point can burn you badly.

Reversal Candlestick Formations Are Extremely Accurate: By combining this plus a


bounce off of s/r after a move in one direction, REGARDLESS of overall trend, usually
results in a move of some distance, usually back to the next s/r at least. Higher
timeframe, the better the move.

Gold Trades Well Most of the Day: Really the only time gold doesnt move very well
is the last couple hours of NY session and first couple hours of Asian session. By time
Tokyo opens, gold can be traded. Moves during Asian session are smaller than London,
and London moves tend to be smaller than NY moves. Biggest moves occur when both
London and NY are open.
Price Action Dominates: The best indicator I have found for subsequent moves is
simply price action. If gold moves strong through or off of an area, particularly after a
period of quiet price action, the resulting moves are very consistent.

Gold Can PUNISH Bad Trading: Oh boy, if you arent 100% good at identifying
proper areas or the moves around them, gold can make you lose quickly and in both
directions. Common mistakes like shooting from the hip by taking gut moves, or
revenge trading which can usually be rectified after you calm down in forex, are
usually too late to do anything about with gold. You need a plan, and HAVE to stick to it
to even have a hope of success.

And Operation Goldrush was born. I want us all to monitor, analyze and profit from gold
trading. I want us to be intimately in touch with our golden side. I want to scour the world for
the best gold trading systems and methods. I have already created methods I am using in the
current markets. In 2014, I implemented my studies into demo and then live trading. Before we
take this any further, I must warn:

GOLD TRADING IS NOT FOR BEGINNERS!!!

IF YOU ARE STRUGGLING AT FOREX, GOLD WILL EAT YOUR LUNCH

IF YOU ARE NOT DISCIPLINED AND STRUCTURED CONSISTENTLY, GOLD


WILL RUIN YOUR ACCOUNT

I actually am not trying to scare everyone away, but I have to be straightforward and not lead
anyone down a path to destruction of their account. I am doing Operation Goldrush as an
alternative trading opportunity for our more experienced members. I know some of you already
trade gold. I want to give us a format and a forum to explore this awesome market. The way I
see it, gold is the universal currency since all nations and people all over the world are
involved in gold. My recommendation is if you do want to try your hand at this market, do so
from a demo account and stick to that for 2-3 months before going live.

Over the coming weeks we will be delving deeper and deeper into this subject. There will be
weekly analysis to start the week, and we will check back towards the end of the week to review
trades I have taken, or check out products that seem interesting to me. Of course, you are always
welcome to throw your hat in the ring and recommend something for us to check out and test. I
have a great track record getting vendors to work with us on trying new products so if you see
something you want to check out, let me know and I will try to obtain it for our use and abuse.

I look forward to embarking on this new adventure and hope that you will join along, even if its
from the sidelines!

This article was originally posted in our 5* rated Forex Mentor Program members area. Since
when Omar has gone on to outline how he trades gold and how you may follow his lead.

If you would like to find out more for just a $1 then please Click Here!
Author: Omar Eltoukhy

GOLDTRADEMASTER.COM

10 Top Gold Trading Tips

Trade Gold with my strategy it is simple and profitable


Please, before i start, i opened this thread to share my experience on my gold trading and not for
members to give comments outside the strategy i have describe. Also feel free to ask any
question as i will be following this thread up from time to time.
Happy Easter celebration To you all. As part of my Easter gift, i have finally decided to share my
trading strategy on gold which i have been doing for about 4 months now and it has been
yielding profit for me.

BRIEF DESCRIPTION OF GOLD TRADING

Let me start by describing what gold trading is all about. Gold is a metal and it is categorized
under commodity trading. it is important to know that gold trading might not move as rapid as
currency trading but for sure, it is much profitable and Can easily be traded by any trader with an
experience of currency trading. i will be using a simple term to describe my work to enable
beginners in forex trading to also benefit from this strategy too.

SETTING UP YOUR TRADING PLAN

In setting up your trading plan, you will be required to do the following.


1. you will be doing your trading on meta4 trading platform.
2. you will be using a time frame of daily chart.
3. you will be using a pair XAUUSD for the trading pair which is the same as gold.

Now that you have set up your trading plan, the next thing i have to do is to describe the
technical details involved in this trade.

Please dear members, i will be using my local time to describe the strategy and you will be
required to convert the time to your own local time so that we all can synchronize. my local time
is on GMT +1

THE STRATEGY ITSELF

In the strategy that am about to describe in a short time, you will be required to calculate a pivot
point. for novice who cannot calculate pivot point, i will be doing a short description of it now
for clarity.
In pivot point calculation, you will be required to get from a full formation of a candlestick the
HIGH, LOW, and the CLOSE as described below
candlestic2.JPG
Let me take for instance that the value for the high is 1597.65, the value for the low is 1597.50,
and the value for the close is 1597.60
Now the next thing is to calculate the pivot point which is (high + low + close) divided by 3. in
this case it is 1597.65 + 1597.50 + 1597.60 = 4792.75

the PIVOT POINT NOW = 4792.75/3 = 1597.58

Now we have gotten an idea on how to calculate the pivot point, the next is for me to describe
what you need do.

Every morning (in my own time it will be morning but might not be for you) by 7.00am
(Remember am using my local time which is GMT +1), open your trading platform and make
sure the currency is on gold which is XAUUSD and also make sure it is on daily chart. take the
pivot point point for the previous day. this means the pivot point for the candlestick formed
before the present one that is forming.
If the pivot point is greater than the current price, you open a buy order and use the pivot point as
a take profit target but if the pivot point is less than the current price, you go for a sell and still
take the pivot point value as your take profit target.

for example, let us say the current price at the time of checking which i normally do by 7am
GMT +1 (make sure to convert this time to your local time) is 1597.62 and your pivot calculation
was 1597.69, this means that the pivot is greater than the current price and what you will be
doing is to place a BUY order with a take profit equivalent to the pivot point and in this case,
your take profit should be 1597.69

on the order hand, if the pivot point was something like 1597.50 then you place a SELL since it
is less than the current price of our example. then our take profit should them be 1597.50

please use a low lot size because gold trading is higher than that of currency trading. for instance,
for an account of $100, I normally go for a lot size of 0.02 lot size. using that as an example, you
can estimate that for other account size.

If you think that calculating pivot point is a bit of work to you then you can get it daily from
http://www.forexpros.com make sure you get the one for gold and it should be on daily chart. do
not pay anything to anyone for this pivot point. its totally free and free of charge.
I have been doing this for the past four months and i have been getting a positive result. at least it
gives up to 85% positive result.

If you are in doubt, you have nothing to loose trying it on your demo account as you see the
result. please my trading is from monday through friday but once in a day using the time i
described in the strategy
Price Action Trend Trading with Gold

Summary: This article covers some important lessons and information about trading gold with
price action as well as a good background on gold and whats currently going on in that market.
It will then explore the price action setups and patterns which have been forming on the daily
chart and how profitable these setups have been for traders. Not all traders look at gold, but it is
certainly time for you to start looking given the positive expectancy of the price action setups
unfolding in the recent past, we are in a hot winning streak so to speak, with plenty of setups
producing significant gains on the upside. Enjoy the article..and please remember to comment
after reading.

Gold is the universal currency. In our current times of global economic uncertainty, savvy
investors are bidding gold higher and higher, looking at a weekly gold chart it is readily apparent
that this most precious of metals has been in a bull trend since around the middle of 2009, if not
earlier. Many investors around the world are losing faith in governments that take on more debt
than they can possibly repay within a reasonable period of time. The safe haven of the U.S.
dollar is not as safe as it once was and the Euro is experiencing many troubles of its own with the
continuing Euro-zone debt saga.
Given that gold is an international store of value, its price in dollars should be inversely related
to the value of the Dollar, says Nic Browns analysis team at Natixis. So conditions must be
extreme to push the correlation so far into positive territory.

One week before the G-20 group of leading economies meets in Toronto, Economic policy
around the world has taken a major wrong turn, and the odds of a prolonged slump are rising by
the day, says Nobel prize-winner, Princeton economist and New York Times columnist Paul
Krugman.

The current financial environment of volatility and see-sawing market conditions carries with it a
double impact of bullish fundamental forces on the price of gold. On the one hand, when we
get big sell-offs in equities as we have seen recently it injects fear into financial markets and
sends people flocking to gold due to its reputation as a safe alternative to almost any other
investment vehicle during these times of risk aversion. On the other hand, when we see the
strong bear-market counter trend rallies that we have also seen lately, it works to weaken the U.S.
dollar and this also bolsters the price of gold. Essentially what we are seeing right now is the
very desirable conditions of both the fundamental and technical pictures for gold lining up nicely
to allow a very strong up trend to develop.

One of the simplest ways for traders or investors to take part of this intense gold up trend is to let
price action be their guide. In taking a look at the daily chart of gold, we can see numerous price
action strategies that occurred in the context of this trending market that nearly all worked out as
great entry points. Notice in this chart below how accurate price action can be and the frequency
with which it provides high probability entry signals. By no means are we suggesting traders
should have or could have taken all of these entries. But when you combine such high
probability entry strategies with a sound money management plan, including a profit taking
strategy, it would be very hard too not profit consistently in strongly trending markets like we are
currently seeing in gold.
Notice how there is no messy indicators on the above chart. If you had been trading an indicator
based method with oscillators like stochastics or RSI, you would have seen numerous sell signals
throughout the course of this recent gold uptrend. The problem with such methods as well as
software trading robots is that they cannot really discriminate between varying market
conditions. This is where the human factor comes into play, you need to use your human
discretion and chart reading skill to identify trending markets from sideways markets, and
volatile markets from calm.

The fact that price action setups allow you to make sense of and trade off a raw or naked price
chart means that you dont have to endure any of the confusion of trying to interpret numerous
lagging indicators. People get stuck in the habit of blindly taking every buy or sell signal that
their indicator based system or trading robot gives them. This is simply not conducive to
successful long term trading because of the fact that a certain amount of discretion is necessary
to filter out the good setups from the bad.

Trading off of price action setups is a great way to obtain high probability entries into trending
OR consolidating market conditions. The best part about using price action is there is no lag as
with indicator based methods. When you see a pin bar, inside bar, or other price action setup you
simply take the setup in the direction of the dominant market momentum and then sit back, set it
and forget it, and let the market do the rest of the work. Too many traders take the opposite
approach; they end up over analyzing their charts and various economic indicators to the point of
exhaustion and mess around with their stops and targets while their trade is underway. This is the
exact opposite approach to successful long-term trading. You will find the clarifying power of
price action trading to be the breath of fresh air you have been looking for in the markets. The
truth of trading that no one ever wants to admit is that there simply is no easy path to becoming
consistently profitable. The most efficient and effective route is learning to trade off of a
completely raw price chart by identifying simple price action setups like those in the daily gold
chart above.

Lets look at one more example of some of the price action that has occurred on the recent daily
gold chart, this time examining risk reward scenarios that you could have taken advantage of.

And some Very Recent Examples :

The current chart showing 2 pin bars in a row , with the second pin bar retracing the first to
provide an entry and then prices rallying strongly into the close.There is still a good chance for a
move to the upside given the recent success of similar signals. Sure I could be wrong, but if
history repeats, we should see some upward movement of some form in the near future.
Lessons to learn from this price action educational article:

Gold is a bull force to be reckoned with right now, when a market is in a strong trend there will
naturally be many great entry points. Price action setups can provide a plethora of accurate and
non-lagging entries into such trends.

Human discretion plays a big role in trading success, despite what internet marketers want you
to believe, rigid trading robot and lagging indicator systems will never make you a consistently
profitable trader. You need to get an education in price dynamics and naked price chart reading
to develop your discretionary trading skills.

There is simply no need to cloud up your charts with lagging indicators when mastering a few
simple price action setups is much more accurate, effective, efficient, and stress free.

When fundamental AND technical forces are in alignment, as with the current situation in gold,
price action traders have an extremely valuable opportunity because trading with price action
allows for much more accurate entries than other methods as well as providing traders with a set
and forget style of trading when used in combination with simple risk to reward scenarios.
Nial Fuller is considered a leading Authority on Price
Action Forex trading strategies. If you want to learn more
about harnessing the power and simplicity of Price Action
Trading Strategies please visit Nial Fullers Forex Trading
Course & Traders Community Page Here. Nials Students
get lifetime access to all of his advanced price action
Forex Courses, video lessons, webinar tutorials, daily
trade setups newsletter, live trade setups discussion
forum, traders support line & free ongoing course
updates. For more information visit the Forex Course page
hRSI 5 Day Look Back for Entry and Exits
by Jake
(Thailand)

I have had very positive results using the RSI (Relative Strength Indicator) 5 day look back for
entry and exits in my swing trades. The usual default of the RSI is 14 days on most chart settings
(ie...Stockcharts.com). For a swing trader with a 2 to 5 day time frame the RSI (14) day look
back is inadequate. I know this site advocates using the Williams % indicator to help with entry
and exits but I find the RSI (5) to be more "robust". Just my personal choice.

The RSI(5) strategy is simply a timing devise for entry and exit, it is NOT a set up. The entry
begins when the RSI (5) is below 30 and starts to move above 30. Once it crosses 30, I enter the
stock. 80% of the time I will hold this stock until it crosses above 80. At this time, I sell the stock
when it crosses below 80. The other 20% of the time, I sell before it gets to 80 because I can see
from the chart (area of resistance) that it probably won't get to 80 so I just sell the stock when it
hits resistance.

By the way, I do not use trailing stops. I use the RSI (5) 80 rule or sell when the stock hits a
resistance price area. Also, I will usually sell the stock if it goes up 4 straight days in a row or
goes up 10% in two days. I do not like to give back profits and so I am not willing to allow the
stock to retrace any price that I feel will invalidate my risk/reward ratio.

Of course, I have my 2% stop loss in the trading plan when I enter and use the money
managment sizing concept advocated in this site as well.

If anyone is interested, I will be glad to write up my swing trade set up for you to evaluate. In the
meantime, I recommend trying the RSI(5) strategy for entries and exits. It can also be used as a
filter or confirmation signal of the swing trade pullbacks.
Best of trading.

Jake
Thailand

ere.