This is a copy of a post that Omar Eltoukhy made earlier this week in the members area of our low cost, 5* rated forex mentoring program. Omar has been trading gold for over a year now and has developed a system that takes advantage of the huge average daily ranges on gold and is very profitable
Trading Gold:
Hi Gold Traders!!
Well, it seems many of you are making some gains from this adventure so far, and I’m happy to be able to report that.
Don’t get overconfident, as we have really seen some mellow gold trading lately.
On the flipside, we haven’t seen many “big” days as we have been pretty range-bound for a while now.
There will come a few breakouts per month that really ride for hundreds of pips quickly, so make sure your gameplan includes ways to capture those rarer moves along with the nice, regular breakout trades we are getting a few times every week.
Honestly, I am finding more trades that I am taking, but I am really wanting to just stick to the super-high probability trades at the moment. We will potentially expand what we include at a later date when I have tested my theories a bit more. What may seem like an opportunity the first few times you see something happen does not mean that it can be used as a reliable way to trade in the long-term.
Ok, ok, ok. I hear you guys about the thread in the forum. That will kick off this week on Thursday. I look forward to seeing you in the new “Project Goldrush” part of the forum by London Open on Thursday. So after the launch on Thursday, I will attempt to keep up with it as much as possible, BUT this will NOT be a “call room” atmosphere where everyone collects to get entries.
We will discuss trading gold, but the goal is and always will be education. But there is a definite need for this because we simply cannot keep discussing our trading gold which is a lot of fun through the comments of blog posts.
Check out the video at the bottom as I go through a few of last week’s setups along with a little discussion about how the market is setting up this week. I also answer a couple of the burning questions from the comments received last week.
Trading Gold :Weekly Analysis:
NFP produced a much sharper move in gold compared to forex last week. The move Friday we saw was significant because it provided both a daily and weekly break of the last major down trendline from mid-March. This seems exceedingly bullish. Over the last couple weeks I have remarked about the speed by which bullish moves have occurred compared to the same distance moved to the downside, which were more like “slides” while the moves up were swift and strong. This suggested to me, there is life in the upwards direction.
Ironically, the majority of the pips I have made during this time period has been short, so that reinforces the fact that we shouldn’t get hung up on “trend” but rather use both sides moves, while always keeping in mind where the strength in the market is. This comes in handy on how long to hold your order. When we are in a stronger trend, then we can hold longer for bigger gains.
At the moment, we have been moving in a big sideways motion, which MAY have been broken by Friday’s NFP move. Next week, I will discuss in more detail what news trading means for us in gold. Although, I freak out around big news in forex, it does not scare me with gold. The news generally seems to confirm technicals rather than lead them, at least for the moment.
As we look to trade this week, our focus again comes around the major fib areas of the last major upswing from the weekly chart. In the video, I show you how to also add in the even bigger fib area of the last massive monthly down-move, which started back in Fall 2012. We will highlight these fib areas as they are sure to be important when we arrive at them. In the meantime though we have a 50% fib at 1287.27 and the 38.2% at 1312.02. For me to get into a nice long breakout, I want to see both the 38.2% fib as well as 1313.00 break to the upside. For a resumption of short trading, I want to see the little upchannel we have formed break, and then later, for the 50% fib to re-break again. Simple, easy and identifiable areas.
Remember to re-calibrate trendlines as ones no longer have a use, and new ones become available. Setup daily triangles if they are there and play the breaks. Check the video and see you in the forum on Thursday!! Best wishes and happy trading!!!
This was a post and part of a video series & gold trading forum that Omar has created inside our members only forex mentor site. At the moment you can test drive it for just a $1 for 7 days, to find out more CLICK HERE
Author: Omar Eltoukhy
Don’t forget you can learn how to trade forex and gold, free of charge simply by CLICKING HERE
Trading Gold Recap and Outlook Video:
http://youtu.be/1vGBKdAAS-E
Top Tips For Trading Gold
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