This GOLD Trading Strategy makes me $1000 a day?!

This GOLD Trading Strategy makes me $1000 a day?!
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So, let’s dive into the only gold trading strategy you’ll ever need to make $1,000 a day. This strategy revolves around the concept of supply and demand. The idea is to look for aggressive buying and selling, aligning with the smart money—the big players who actually influence market movements.

In an uptrend scenario, for instance, where prices are making higher highs and higher lows, you identify a demand zone. This is a zone where there has been aggressive buying, reflected in multiple green candlesticks in a row. The key is to wait for the price to come back down to this demand zone for a retest.

On the flip side, in a downtrend scenario where prices are consistently dropping, you look for a supply zone. This is an area marked by aggressive selling, seen in multiple red candlesticks in a row. The idea is to wait for the price to come back up to this supply zone for a retest.

The two reasons why this strategy is powerful are:

  1. Following the Trend: You align yourself with the trend, rather than trading against it. By following the smart money, you ride the overall trend in the market.
  2. Versatility in Market Conditions: This strategy can be applied in any market condition—whether the market is ranging, trending in an uptrend or downtrend, or even undergoing a reversal.

Ranging Market Example:

In a ranging or sideways market, where prices are fluctuating without a clear trend, you can still apply this strategy. Identify a supply zone when there’s aggressive selling and a demand zone when there’s aggressive buying. Wait for the price to retest these zones and look for confluences, such as a moving average crossover and a candlestick pattern, on a lower timeframe like 15 minutes.

Uptrend Example:

In an uptrend, spot a demand zone where there’s been aggressive buying. Wait for the price to retest this zone and look for confluences before entering a buy position. Confluences could include a moving average crossover and a bullish candlestick pattern.

Downtrend Example:

In a downtrend, identify a supply zone where there’s been aggressive selling. Wait for the price to retest this zone and look for confluences before entering a sell position. Confluences could include a moving average crossover and a bearish candlestick pattern.

In each case, patience is crucial. Wait for the right conditions and confluences before entering a trade. Use proper risk management, placing stop-loss orders above or below key levels, and set take-profit levels at the next significant support or resistance area.

This strategy, based on reading supply and demand zones, allows you to navigate various market conditions and trade with the smart money, increasing your chances of success. Remember to continuously refine your approach through analysis and backtesting.

n summary, when implementing this supply and demand strategy, consider the following:

  1. Stop Loss and Take Profit Placement:
    • Place your stop loss below the demand zone for a buy and above the supply zone for a sell.
    • Base your take profit on key levels from historical price movements. Look to the left and identify where price last stopped or reversed.
  2. Patience in Waiting for Setups:
    • Be patient and wait for price to retest the supply or demand zone.
    • Look for two main confluences before entering a trade: a moving average crossover and a candlestick pattern.

Now, let’s go through examples in different market scenarios:

Swing Trade Example:

In an uptrend, identify a demand zone with aggressive buying. Wait for the price to retest the demand zone and look for confluences before entering a buy. Set your stop loss below the demand zone and take profit at the next key level.

Downtrend Trade Example:

In a downtrend, identify a supply zone with aggressive selling. Wait for the price to retest the supply zone and look for confluences before entering a sell. Set your stop loss above the supply zone or the last lower high and take profit at the next key level.

Reversal Setup Example:

If there’s a reversal in a downtrend and a support area (demand zone) forms, wait for the price to retest this zone. Look for confluences, such as a moving average crossover and a bullish candlestick pattern, before entering a buy. Set your stop loss below the support area and take profit at the next key level.

Remember, patience is crucial. Avoid entering trades immediately when price touches supply or demand zones. Wait for the right confluences to increase the probability of a successful trade.

These strategies can be applied to different timeframes, allowing for both swing trading and shorter-term scalping. Always practice good risk management and continuously refine your approach through analysis and back testing.

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