Gold trading plan – Point of control for trading.

Gold trading plan – Point of control for trading.

Corona, CA – Joel Wissing on Gold trading plan – Point of control for trading the gold market 2nd quarter 2015.

Gold trading plan, gold market, gold pricingDo you have a gold trading plan? Many gold traders are reactive to the market because they have no written trading plan.

Trading is pretty simple, the market goes up or down, it is controlled by buyers or sellers.  A gold trading plan looking at different time frames, support and resistance levels and trading range can make your trading more responsive to what is happening in  the market.

Gold Trading, we are seeing a bounce off of the 50MA which will act as a ceiling. this was at $1215.  Once gold broke through the $1200 mark, we saw market makers selling into the bid.  This gave us price failure over $1200 and the price of gold then turned and moved down to $1177 support range.  The retracement down might not be finished and the Point of Control (Decision Point) on this move is $1175 with a range to $1190.  This is a 15 point range, where we can see quick moves intra-day.

The Range the Price has been consolidating in is from $1140 to $1220, until we see any real commitment by buyers or sellers in volume there will be little chance for a change of direction in this bearish channel.  The 200MA moving average is close to $1240 and can be used as an upside resistance which would give us a right hand shoulder for another classical trading pattern the Head and Shoulders with the head being the swing high at $1300.  If the sellers should move in the Equidistant move is projected to $1044-$1050 if sellers take it through the previous swing lows of $1140.  A powerful swing down. If we do test the 200MA then I would look for a sell off to $1080.

As mentioned before when making a Gold trading plan, the importance of understanding the support and resistance for moves controlled by both the buyers and the sellers is a way to plan for any direction.

The zone from $1290 to $1350 will be the fight zone between buyers and sellers, if we see gold prices move into this area, I am looking for it to stay consolidated until there is an outlier to break it out of the range.

Gold prices in the future reflected in dollar value, will be more relative to value of the dollar in international trade, and when trade moves away from the dollar, we shall see price increase. I expect to see it come into play in September 2015 when China, Russia and Saudi Arabia trade directly and move out of dollar oil trades.  The velocity of this change will have the greatest net effect on the dollar gold values.  Joel Wissing from Outliers 2015

 

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