you guys have no idea how many dms i get
asking to learn how to trade gold gold
is like
the gold standard of day trading if you
can get successful trading gold you can
make a lot of money very quickly
and if you suck at trading gold you can
lose a ton of money
very quickly so in this video i'm going
to show you
how i would scalp gold i do not trade
gold because i've been
burned on it before so it left a bad
taste in my mouth
but i've been back testing it and using
the strategies that i've made videos on
this
channel i'm getting some pretty good
results
[Music]
welcome back to the channel everybody my
name is artie and this
is the moving average the show where we
discuss everything day trading to keep
you
profitable on a consistent basis so
because gold has different contract
sizes you can place a small trade on
gold
and make way more money than you would
the same small trade on forex it's the
same with indices or cryptocurrencies
the issue with gold is that the price
can spike up or down dramatically at a
moment's notice
so here is my warning do not trade gold
with live money if you've never done it
before
start on demo the next thing that you
need to do before you even touch this
is watch all of my strategy videos i've
got a whole playlist
on the channel about all the strategies
that i do i do not make a video on a
strategy
that i feel does not work you won't see
me reviewing strategies
that simply suck just to get the views
the reason i say this is because you
need to use a combination of strategies
you need to know support and resistance
levels you need to be able to trade off
of moving averages going with the trend
you need to be able to identify
engulfing candles and
when to trade off of them and what a
three line strike looks like you're
going to use
all of these strategies all combined
into one
the best way that i can explain it is to
watch my rsi divergence video
because i cover all of the confluences
that you need to have
to have a successful gold trade i have a
pen
and paper also because i like to write
down what i'm seeing
it helps me execute my trades properly
without getting lost in all the noise
and letting my emotions take over my
trade so without further ado
let's get into the charts so like i said
gold at a moment's notice can swing
up and down very quickly hitting
people's stop losses
as you can see right here and right here
so
in order to trade gold properly in my
opinion you need to go to a lower time
frame
one minute is far too noisy it creates a
lot of false signals and i do not
recommend
it but the five minute is nice and quick
and yet still gives you decent signals
for a decent trade position
these trades are going to be extremely
short term
i'm talking about a maximum of six
five minute candles so less than an hour
on any one of these gold trades
the reason is gold is a fickle
and i don't want you guys to get burned
you are going to have extremely tight
stop losses and you are going to get in
and out of the market quickly
so i've got gold usd up here on the five
minute chart
and we are going to focus on trades
going long
when it is above the 200 period smoothed
moving average
and short trades when it is below the
200 period moving average
again these are smooth moving averages
so things that i need you to avoid
completely you do not want to trade
while moving averages are smashed
together like this it is a no-no in any
day trading scenario
if you see them smashed and flat no
touchy okay
i want you to visually see these three
moving averages
fanned out at a nice slope these moving
averages
are smoothed they are the 21 the 50 and
the 200.
i also want you to put an rsi up just to
see if the price
is below or above the 50 level on the
rsi
not overbought and oversold we're also
going to be looking for rsi divergences
that's going to help us a lot when
getting out of our positions so if you
guys can catch a move as it crosses
through the 200 period moving average
then comes up to retest one of these
subsequent moving averages
you can actually get a nice decent move
to the downside or the upside
with a three line strike i've zoomed
this in super close but you can see the
price went down below the 200 period
moving average
we got three nice decent bullish candles
and then a big fat engulfing bearish
candle engulfing
at least fifty percent of this move at
this point
this is where you would get into your
short position and you would keep your
stop loss
right about here so for this specific
trade your entry
was 1778 and your stop loss is 1780.
that is only a
two dollar difference this is why it's
important to keep your stop losses tight
because gold can move quickly and really
never ever come back to your entry price
and you will blow your account
nine times out of ten if you hold it
thinking it's going to go the opposite
direction so
basically what we're looking at here
usually i
double the size of this engulfing candle
for my stop loss but because the 200
period moving average
is right here i'm just gonna leave it at
that maybe just a little bit above
so when exiting a trade you are looking
for an
rsi divergence basically the price
already has momentum you see these huge
big fat red candles to the downside it
has momentum to the downside so we are
definitely going to go down to the
oversold
area of the rsi so we created this low
right here and this one didn't exceed it
but
this one did once we see this lower low
being formed we're automatically always
looking
at the rsi for higher lows
signifying a divergence if you're happy
with the first
swing you got three dollars off of this
gold trade
and with a decent lot size like you
could have made a lot of money off of
this short move
but if you're waiting for the rsi
divergence i mean technically you still
would have gotten out at the same point
because
at this close of this candle that's when
you would have gotten out because we're
creating
higher lows right here and creating a
lower low right here
again you have to be extremely careful
like you have to be
very focused on lows and higher lows and
lower lows
structure rejection off of moving
averages i would have gotten out of this
trade right away when i started to see
this consolidation
because we rejected off of that 21
moving average and instead of continuing
down we started to go back up
that's consolidation for me and i get
out of a trade when i see consolidation
i don't like to be in it because i don't
know if it's going to continue down or
go up that is your first three line
strike and you're engulfing your entry
and your exit now again we're only
looking for short positions because
we're below the moving averages right
again we have one two and three candles
right here with a big engulfing candle
to the downside
basically covering about 50 percent of
that move so we can actually get in
on another short position here this
we're just going to double the size of
that candle
and we're going to wait for our next rsi
divergence this one actually played out
really really nicely because we created
that
low right here and on the rsi was about
the 14 level
showing a very very oversold market
means that the momentum is very strong
in that direction
so we actually started coming up
creating another lower low and another
lower low so i actually would have
gotten
out on this first divergence here you
can see the move is right here we had
this low point and then
a higher low even though the price went
down and created a lower low that first
divergence and this
long wick right here that was my exit
point at the close of
that candle and with this one trade you
went from 1776
to 1769 a seven dollar move on gold
which is not bad do you see what i'm
getting at here you need to be
trading with the trend you cannot hold
back the momentum of gold with your bare
hands it is physically impossible
imagine a semi truck with a rope at the
end and you see it driving by
and it's like going slowly and you're
like oh yeah i'm just going to grab this
rope and hold the semi truck that's
literally what you're doing when you
trade against the trend with gold it is
physically impossible for you to win
just to keep this video quick
all of the strategies that i'm showing
you right now i've made detailed videos
on
you can find them on this youtube
channel also if you guys are still
watching this video
that means that you like it so hit the
thumbs up button so we're trading with
the trend we're trading three line
strikes
for sniper entries with extremely
extremely
tight stop losses we're looking for an
rsi divergence to exit our trade
and we never ever ever ever ever
trade gold when the moving averages are
touching each other
or flat again you guys need to know
market structure you need to know how to
trade off of moving averages
you need to know how to recognize these
engulfing candles but
this works consistently also keep in
mind don't
force the trade unless you actually see
like three subsequent candles in one
direction and then an engulfing
do not get in on a trade like this was
not a good
trade to get in on even though it went
up and you would have made money
you're not sure about it and you should
never ever ever do that
write down your rules on a piece of
paper only get into a trade when you
have all of your confluences
to find all the confluences that i'm
talking about please watch my rsi
divergence video
right here and if you guys enjoyed this
video and you like the way that i teach
consider subscribing to the channel by
clicking this
button right here it's tma the moving
average the name of this channel and i
would deeply appreciate it and it would
boost my ego
thanks again for watching and we'll see
you in the next one