- Daily trading signals- complete with Entry Point, SL and TP
- Trading community- for you to ask questions and discuss market opportunities
- Pro Trading Course
300Eur instead of 450Eur
Even if you follow a signal channel I think it is important to understand the reasons behind the trades you copy.
This will not only give you confidence in those trades but will help you learn. That’s why I ve decided to explain in detail the logic behind this week’s Gold trades…
If you’ve read my recent reviews, you’ve noticed that I’m bearish Gold
On Tuesday 27 October I said:
“Yes, I’m very bearish Gold on the medium term, and to be honest this “I’m holding 1900, come, buy and make money” looks like a big trap for bulls. Although this morning I was slightly bullish for very short term moves, the steep reversal from 1910 zone convinced me to have only one trade side for the yellow metal, sell Now again the price is just above 1900 and if this finally fall (and it should soon) I expect the drop to be quick and hard Gaines should be well caped under 1910 now, and eventual rallies should be sold Also, for now, I’m maintaining my target of 1850 but I wouldn’t be surprised of a drop lower if we finally have a 1900 break”
Gold chart at that point:
As you can understand from the comment above I was more and more bearish Gold and the reasons are two:
1. The structure for 1850-1930 rise is corrective and bearish in this case
2. The turns from 1900 were too obvious for being the start for a bull run
The trades from Tuesday were:
Sell Market Gold at 1902.50
Sell Limit Gold at 1908.00
The first trade was a trade in case of a break without a new test of 1910 zone(not missing out), the second was a pending order on the top of the range.
Now let’s get to the really GOOD STUFF!
On Wednesday 28 October the price had a new retest of 1910 resistance zone and broke short term ascending trend line and dropped again to 1900 zone, moment when I added to 2 more trades being convinced that this time we will have a breakdown.
Do you wonder why I was convinced?
If you look closely at the chart below you can see that the rise from 1903 to 1910 took 7 hours and the drop to 1903 took only 3 and in 4 hours the price was back to 1900. Also, the candles are big after the price broke the short-term trend line.
Trades added at that point:
Sell Gold 1901
Sell Gold 1900
As you can also see from the chart below the drop was steep and I was able to close both trades from that day with a pretty nice profit in the same day.
Sell Gold 1901- Closed at 1876 + 250 pips
Sell Gold 1900- Closed at 1876 + 240 pips.
The next day, seeing that Gold found support on the short term in 1870 zone, I closed 1902 trade at 1875 with 260 pips profit. And yesterday (Friday) not wanting to have open trades over the election weekend I closed 1908 trade at 1874 with 340 pips profit. This article is meant to show you how you should think of a trade but mostly to demonstrate to you that you earn more money with trades that target 100-200-300 pips than adding 20 pips Tps for tens of trades.