Gold trading strategies
The 'fit' to that specific market condition is perhaps more important than the specific strategy used to analyze or set up trades in Gold. For example, if we focus on the green boxes in the above image, when the short-term trend is moving in the direction of the longer-term trend, traders will want to follow the age-old adage of 'buying low and selling high.' However, when prices are ranging, traders will want to similarly buy low and sell high, but in a slightly different way; closing the entirety of the long position while 'high' and then potentially getting short to play the other side of the trade.
To begin with, this means that no trader will always be 'correct' because conditions, like trends, will change; and it is impossible to know this until after the fact. This is where trade and risk management come into play, potentially helping to mitigate the downside when something changes or shifts away from their expectations.
To begin with, this means that no trader will always be 'correct' because conditions, like trends, will change; and it is impossible to know this until after the fact. This is where trade and risk management come into play, potentially helping to mitigate the downside when something changes or shifts away from their expectations.
Nov 22, 2022 20:11