Module 2: Advanced Gold Trading Strategies

In this module, we’ll dive deeper into advanced gold trading strategies. You’ll learn how to use Support & Resistance (SnR), identify chart patterns, and make informed trading decisions. By the end of this module, you’ll have a solid understanding of how to apply these strategies to maximize your profits in the gold market.

We BUY/SELL Based on What Exactly?

You need to look at SNR. What is SNR?

• S - Support
• R - Resistance

Support & Resistance

Before I explain in detail, let me introduce what Support and Resistance (SnR) are:

• Support is where we will find BUY because support is a level where demand is high, causing the price to stop from falling.
• Resistance is where we will find SELL as it is a level where traders sell the currency, causing the price to not go any higher.

Types of Support and Resistance

There are two types of Support and Resistance:

• Support:
  • Strong support
  • Weak support
• Resistance:
  • Strong resistance
  • Weak resistance

Breakouts (BO)

Support and resistance can change if there’s a Breakout (BO):

• Support Breakout = Support becomes Resistance (SBR)
• Resistance Breakout = Resistance becomes Support (RBS)

Visualizing Support and Resistance

Key concepts of SnR:

• Forex traders buy at support or nearby zones to capitalize on potential price hikes.
• Forex traders sell at resistance or nearby zones to capitalize on potential price drops.

Simply put:

• We BUY at support.
• We SELL at resistance.

Identifying Strong or Weak SnR

To identify whether SnR is strong or weak:

• If there are many retests/rejections in the SnR zone, it’s strong because the price struggles to break through.
• SnR is best identified in larger timeframes like 4 hours, 1 hour, daily, or weekly. Smaller timeframes (e.g., 30 minutes, 15 minutes) have more noise and less impact.

Chart Patterns

These are common chart patterns found in the #GOLD pair. They often indicate a change in market direction:

Double Top & Double Bottom

• Double Top: The price reaches resistance twice and drops. SELL ONLY.
• Double Bottom: The price reaches support twice and rises. BUY ONLY.

Head & Shoulder

• Head & Shoulder: A pattern indicating a sell setup. SELL ONLY.
• Inverted Head & Shoulder: A pattern indicating a buy setup. BUY ONLY.