We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • $EURUSD Daily Pivot Points: S3: 1.0936 S2: 1.0974 S1: 1.0998 R1: 1.1037 R2: 1.1052 R3: 1.109 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $CAD continues to take a hit against the US Dollar after USD/CAD very nearly experienced a major long-term support-break at the end of October. Get your USD/CAD market update from @PaulRobinsonFX here:https://t.co/qeWFmoLwKt https://t.co/G0o4uIV2k7
  • US Yield Curves Update: 2Yr/5Yr: 3.8 2Yr/10Yr: 22.2 2Yr/30Yr: 69.5 5Yr/10Yr: 18.6
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.51% 🇳🇿NZD: 0.34% 🇪🇺EUR: 0.28% 🇬🇧GBP: 0.17% 🇨🇭CHF: -0.17% 🇯🇵JPY: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Wdqln8EdxW
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.12% Gold: -0.29% Silver: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JRPr0hEqpC
  • $NZDJPY: The back-and-forth we have seen since the summer bottom could be taking on a large bear-flag, but that won’t be validated until the lower threshold is broken. Get your market update from @PaulRobinsonFX here:https://t.co/xBXm7PWHhn https://t.co/j4JNtpycsU
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.55%, while traders in France 40 are at opposite extremes with 86.01%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SWn7XmGR9s
  • $USDJPY Daily Pivot Points: S3: 108.72 S2: 108.77 S1: 108.8 R1: 108.85 R2: 108.87 R3: 108.92 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • I guess I should have bought that 'Dow 30,000' joke hat back in 2007 (just over double the high back then)
  • US Equities Update (Friday Close): $DJI +0.80% $SPX +0.74% $NDX +0.70% $RTY +0.47% $VIX -8.47%
Two Ways to Trade Gold

Two Ways to Trade Gold

2013-06-14 19:00:00
Walker England, Forex Trading Instructor
Share:

Article Summary: Gold continues to consolidate after its $375 decline. Price now offers two ways to trade using a symmetrical triangle pattern.

Fast moving markets are known to have periods of consolidation after the conclusion of a strong move. Thus is the case with Gold (XAU/USD) seen below after a sharp $375.81 decline.These periods may come in many forms on your chart, but one of the most recognizable patterns of consolidation is the symmetrical triangle. These charting patterns occur when current levels of support and resistance are seen converging on our chart. With this in mind we will further examine the price of gold, and identify two ways to trade symmetrical triangles.

Learn Forex –Gold Daily Triangle

Two Ways to Trade Gold

(Created using FXCM’s Marketscope 2.0 charts)

The first method of trading a symmetrical triangle is to wait for price to breakout from current levels of support and resistance. This can be useful for gold traders thats don’t have to have a clear opinion of future market direction. Traders can trade a breakout in either direciton by setting up an OCO order. Traders can plan to sell a break of support and trade the pair to new lows under .$1.338.06. At the same time traders can look to buy a price break above resistance on a breakout to a new high above $1,423.71. In the event that price moves back inside the triangle Stop orders can be placed on both entries in the center of the triangle pattern, to limit risk exposure in the event of a false breakout.

Learn Forex –Gold Breakout Strategy

Two Ways to Trade Gold

(Created using FXCM’s Marketscope 2.0 charts)

The second method of trading a triangle is a simple strategy designed to trade between the outlined levels of support and resistance that make up our charting pattern. Again using our example on gold, this time pictured on a 4 hour chart, we can see price approaching the upper boundary of our triangle that is currently action as a line of overhe3ad resistance. Traders looking to trade the interior of a triangle may consider setting entries to sell gold at this point. Likewise if price dips to support traders can repeat the process and set entries to buy. Once entry orders are set, stops should then be placed outside of either support or resistance. In the event that price breaks from these predefined levels traders should exit any existing positions and begin looking for new opportunities.

Learn Forex –Gold Retracement Strategy

Two Ways to Trade Gold

(Created using FXCM’s Marketscope 2.0 charts)

Regardless of where price action ends up on gold, identifying a symmetrical triangle can allow traders to choose from a variety of trading strategies. Remember, the key for trading triangles is to first identify levels of support and resistance. Then, traders can set their risk and manage positions until the pattern concludes.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.