Kou Lee fxThe speaker discusses scalping gold and when it’s best to do so. They focus on using price action and candlesticks and suggest looking at the five-minute and 15-minute charts. They recommend selling gold and waiting until Tokyo opens to see where the trend is going. They advise narrowing down the price range to avoid losing money while scalping.
Scalping Gold – A Comprehensive Guide for Traders
Introduction
Scalping gold is a popular trading strategy among many traders due to its potential to yield high profits. However, not everyone is familiar with the intricacies of this trading approach. Therefore, in this article, we will explore the best time to scalp gold and what to look for while entering and exiting positions.
Why I Prefer Naked Charts Over Indicators
Before we dive into discussing the best time to scalp gold, let me briefly explain why I rely on naked charts instead of indicators. Using price action and candlesticks have been my primary trading tools since 2018. Although I experimented with using indicators in my first year of trading, I found them to be cluttered and misleading.
Why the Five-Minute Chart is Ideal for Scalping Gold
Scalping gold can be highly profitable, but it also requires traders to act quickly. Therefore, it’s essential to select the right timeframe for your trades. In my opinion, the five-minute chart is ideal for scalping gold. This timeframe allows traders to make quick decisions and execute trades promptly.
Leveraging for Smaller Account Balances
If you have a small account balance, leveraging is a useful tool to increase your profit potential. For instance, using a one to five hundred or higher leverage ratio allows traders to maneuver and trade with a smaller account balance. With higher leverage ratios, it’s easier to flip an account, whereas lower ratios may require a more conservative trading approach.
The Best Time of Day to Scalp Gold
The best time to scalp gold depends on the market session. For instance, if you are in the central time zone, Tokyo opens at 6 PM, and the New York session closes at 4 PM. After this, the market reopens at 5 PM. Therefore, the ideal time to initiate your trades is after the Tokyo market opens. During the first hour of the opening session, it’s important to observe the market movement to determine its direction.
Pairing the Five-Minute and Fifteen-Minute Charts
To determine the right time to enter or exit a position, it helps to refer to multiple timeframes. Pairing the five-minute and fifteen-minute charts offers traders a more comprehensive view of the market movement. By comparing these two charts, traders can identify trends and potential support and resistance levels. For instance, using multiple timeframes reveals that gold has been downtrending since it created resistance at 1950 and 1948.
Pinpointing Structure of Support and Resistance
To optimize your scalping strategy, it’s crucial to pinpoint the structure’s support and resistance levels. By doing so, traders can identify precise entry and exit points. For instance, gold’s current resistance level is at 1922, and its support level is at 1910. By narrowing down these levels, traders can focus on a smaller price gap and reduce their risk.
Conclusion
Scalping gold can be highly profitable if traders know when to enter and exit positions. By utilizing the five-minute and fifteen-minute charts, traders can determine trends and pinpoint support and resistance levels accurately. The key is to act quickly and execute trades promptly. Remember, the best time to scalp gold is after the Tokyo market opens. With these tips and strategies, traders can enhance their scalping experience and generate consistent profits.
