A forex trader shares a simple gold scalping trading strategy using Fibonacci retracement and RSI indicators for finding support and resistance levels. The goal is to generate profitable trades with quality over quantity. Stop chasing trades and focus on a major asset like gold.

Gold Scalping Trading Strategy: An Ultimate Guide

Introduction:

Andrew, a full-time Forex trader, has been trading for several years now. In this YouTube video, he shares with his audience an extremely powerful gold scalping trading strategy. This strategy generated 5434 euros and 95 cents, a 90% return on his investment of 6k. Andrew’s aim is to teach his audience how to use a simple strategy to generate a substantial profit.

Quality over Quantity:

Andrew advises new traders to stop chasing trades and avoid placing 10-15 trades a day. It’s best to learn a couple of major assets to trade every single day. Successful traders often trade only gold. Therefore, if you are a new trader, choose one major asset and stick to it.

Why Gold Works for Trading:

Gold always respects support and resistance. Unlike the cryptocurrency market, gold is not going to do anything weird. Traders can rely on gold for long-term trading.

Fibonacci Retracement:

To find support and resistance levels, traders can use the Fibonacci retracement. Andrew suggests using this on a four-hour timeframe. Use spikes to place Fibonacci retracement from the highest point to the lowest point.

RSI:

Another indicator used in this strategy is Relative Strength Index (RSI). RSI is so powerful and undervalued but can be used to show divergence. Andrew advises traders to deselect the RSI based AMA for this strategy.

Divergence:

When the price goes up, and at the same time, the RSI goes down, it’s called divergence. Such a situation indicates that the price will probably come down. Traders should avoid taking buy trades at this point.

Combining the two Indicators:

Traders can combine Fibonacci retracement and RSI to make the best entries and exits. When gold approaches the support and resistance level shown in Fibonacci retracement, traders can look out for the divergence signal in RSI to enter or exit a trade.

Medium-term Trading:

Using this strategy, traders can make medium-term trades. Once the trade is set, traders can adjust their stop loss, and at the same time, move their take profit level.

Conclusion:

Successful trading requires quality over quantity, choosing one major asset class, and sticking to it. Gold is a reliable asset class to trade. Combining Fibonacci retracement and RSI gives the best entries and exits for trades. Traders can use this powerful strategy to make profitable trades in the medium-term.