Learn how to scalp gold in Forex markets within the next five minutes through a support and resistance strategy, using technical indicators such as Stochastic RSI and a Moving Average. A bullish trend may present itself with a bullish engulfing candle confirming an upward trend. Gold is positively correlated with AUD/USD and negatively correlated with USD/CHF.

Scalping Gold in Forex Markets: A Comprehensive Guide

Introduction
Trading gold in forex markets can be extremely profitable if done correctly. In this article, we will discuss how to scalp gold in the forex markets within the next five minutes. This guide will teach you how to identify the support and resistance levels, indicators, and trading scenarios to successfully trade gold.

Identifying the Support and Resistance Levels
The first step in trading gold is to identify the support and resistance levels. You can draw the support and resistance lines till the candlesticks or till the wicks. Another thing to identify is some sort of area of sensitivity. You can find it by observing the market behavior.

Indicators Needed for Trading Gold
For trading gold, you need two indicators – stochastic rsi and a moving average. The default values of stochastic rsi are good enough, and for the moving average, we’ll change the period from nine to one hundred.

Understanding the Trading Scenario
After we have identified the support and resistance levels and have the required indicators in place, we need to understand the trading scenario. We have some sort of the area sensitivity, the resistance line, and the trend line going. The idea behind this trade is simple – wait and watch for the market behavior.

The Important Step
When the market starts to move, we need to observe it closely. The important step is when the market crosses the moving average of one hundred towards the upside; this shows bullish momentum. Also, when it crosses the trend line, it shows that the bear pressure is not there, and the bullish pressure is coming in the market.

Consolidation Phase
After identifying the bullish momentum, the market starts to consolidate between the top and the bottom, respecting the area of support and the area of resistance. This phase probably marks the beginning of the consolidation phase. The stochastic RSI informs us that the bullish momentum is coming in, as it has recently been oversold.

Going Long
After the consolidation phase, there is an engulfing bullish candle, showing bullish momentum. This indicates that we should enter a long position. We should set the stop-loss just below the moving average and set a target ratio risk to reward of two to one since gold is influenced by fundamental analysis.

Honourable Mentions
Gold has a positive correlation with aussie US dollar, and when gold goes up, aussie goes up as well, and vice versa. Gold and USD Swiss franc have a negative correlation, so if gold goes up, USD Swiss franc goes down and vice versa.

Conclusion
Trading gold in forex markets is about following the market behavior closely and identifying the support and resistance levels. Applying the right indicators and understanding the trading scenarios is crucial to making profitable trades. By following the steps mentioned in this guide, you can scalp gold in the forex markets with success.