gold futures are trading right in the middle of its wide trading range, so right away I can see we need to use caution when trading this market.
The most successful professional traders always use multiple time frames to identify the very best day trading, swing trading and scalping entries, and using this simple technique will identify where we are in the BIG PICTURE.
Seeing the big picture on a 21-range chart of the gold futures we now we are in the middle, so everything we do will be higher risk than if the gold market was at the highs or the lows of this specific trading range.
With that said, our best option appears to be the long side of this market, looking at how sloppy the test of the lows were, we really cant get a clear entry for a short trade because of that ‘cluster’ of yellow lines which tell us sloppy support is waiting for us, which will make our short trade entries more difficult.
So lets keep focused on the long side, as you can see the market has recently tested the lows of the major trading range around 1194.3, and now we are working our way back up to make a run for the top of the trading range.
Considering that we are trading during the summer month of August, trend lines and double-tops are good targets because low volume allows price to ‘flutter’ up like a magnet for price, so buying above 1203.9 will be our main focus.
Swing traders
I can see a swing high level above the overhead trend line which will give us an easy breaker pattern long entry above 1203.9
Considering that we are inside the wedge bracket we need to take our final target all the way up to the highs of this range which is 1211, and I will take ½ my profit off the table when we test the trend line just above 1208.5 to make sure we don’t miss this move if it cant quite make the entire move up…we want a little profit for our hard work J
We are going to have to be patient for this trade to work out, seeing the time of the year and the volume in the markets we may be in this trade for a day or two, but hold tight and make sure you follow your trade management rules.
As always, we will review the precise trade management strategy for this trade in our advanced members training on Wednesday. Contact our team for more info on our lifetime membership.
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