The video discusses a profitable trading strategy for gold in the Forex market. It involves analyzing live market data and using lower time frames to confirm trade direction. The strategy focuses on entering trades after a bearish movement and an overextended market. It is essential to identify support and resistance levels to determine market direction. The author suggests waiting for the price to come back below the support level before entering a long trade.

Trading Gold: A Guide to Successful Trading

Introduction: The Difficulty of Trading Gold

Trading gold can be a challenging task. The market is constantly fluctuating, making it difficult to predict when prices will rise or fall. Many traders have experienced losses while trying to trade gold. However, Forex Wizard from Forex Trading Visa Academy has created a unique gold trading strategy that has helped him close multiple profitable trades. In this article, we will explore this strategy and show you how you can apply it to your trades.

Understanding the Strategy

The key to understanding this strategy lies in analyzing the live market data. When you look at past candles, they are “dead candles,” meaning a lot of things happen during the lifetime of these candles that you cannot understand when the candle is closed. Therefore, this strategy depends on the live market data.

The main theme of this strategy is when you see a candle open and start to drop, and if the price drops to a specific level where a bearish candle has formed previously, and then it breaks the high of that candle before one hour of the current candle closes; it is highly likely that the price will drop back down again.

Applying the Strategy

To apply this strategy, you need to be sure about the direction of the candle. For example, in a bullish market, wait for the price to come back down well below the level of support or especially when the price breaks the opening and closing Zone and then creates an overextended market where you can go long based on the timeframe that you are looking at. Then, when the price breaks the high of the previous bearish candle before one hour of the current candle closes, enter a trade with a stop loss above that level.

Example 1: Closing a Profitable Trade

In this example, we will look at a recently closed trade. On the four-hour timeframe, we observe a candle that opened around a specific zone, dropped, went up, and then closed at that same that zone. On the 15 minutes timeframe, we see that the price dropped to a specific level, went up, created a green candle and broke the high of the previous bearish candle, which was followed by a drop in price. This is enough for us to enter a short trade from that level with a stop loss above it.

Example 2: Another Successful Trade

In this example, we see a bullish market where the price breaks out of a specific support level with a long bullish candle. We wait for the price to come back down below that level and then break the opening and closing zone. On the 15 minutes timeframe, we can see that the price goes up, breaks the opening and closing zone, and creates an overextended market where we can go long. We enter a trade with a stop loss below that level.

Conclusion

Trading gold can be difficult, but following this unique strategy can help you make profitable trades. Remember to analyze the live market data, be sure about the direction of the candle, and wait for the price to break the opening and closing zone before entering a trade. With practice, you can master this strategy and make successful trades in the gold market.