low If gold has followed its seasonal pattern in the first months, its wise to expect it to continue following the seasonal cycle moving forward. Subscribe to Trading Strategy Guides If you would like to develop your gold trading skills so that you can make similar profits, simply follow our simple gold trading strategy step-by-step guide. Time of day, contrary to popular myth, is not especially important. First, lets unlock the secrets of trading gold! By: m, trading gold and silver has become increasingly popular over recent years. Do you want to daytrade Gold? For traders looking at consistency and profits, there is nothing better than trading gold futures. What better way than to have two separate assets that are highly correlated that can confirm your bias? Gold - Yen Correlation, if you want to be even more thorough, you could also look at the Dollar index futures for additional confirmation. That makes it higher, for example, than the daily trading volume. The momentum trade set ups for gold futures is another way to trade strong price action.
On the contrary, intraday trading in gold futures, if done right has its own benefits. In our DailyFX courses, we talk about matching your technical gold trading strategy to the market condition. Dollars, but some brokers will price it in Euros and other currencies. A gold trading tip we offer is that fundamental and sentiment analysis can help you spot trends, but a study of the gold price chart and patterns can help you enter and exit specific trades. Gold Futures - Multiple Time Frames. Multi time frame analysis can scare off a few traders, but it is relatively simple.
The seasonal price pattern for gold tends to repeat itself quite often because smart money tends to do the same thing over and over again. The precious metal gold has been always perceived as a safe haven in times of troubled times. Simple Gold Trading Strategy, how to trade gold it ultimately comes down to your preferred time frame. Another reason could be the total spread/commission charged in these instruments by gold retail brokers. Of course, e-mini S P500 does come in close competition, but if you compare the price action between gold and the S P500, trading gold futures wins hands down although it can be a bit expensive to trade gold. Elliott Wave analysis, Fibonacci retracement levels, momentum indicators and other techniques can all help determine likely future moves. As you can see the actual gold price followed its seasonality cycle. On the right side of the chart you can see a doji forming near the bottom end of the trend. Meaning that the final candlestick must be followed by an opposite direction candlestick that closes 50 above the high/low range.