Gold Scalper Trading Forex Trading Strategy
Table of Contents
- 1 Gold Scalper Trading Forex Trading Strategy
- 1.1 RSI Filter
- 1.2 Buy Sell Arrow Scalper
- 1.3 Trading Strategy Concept
- 1.4 Buy (Long) Trade Setup
- 1.5 Sell (Short) Trade Setup
- 1.6 Conclusion
Gold is one of the most actively traded instruments in the world. Even in ancient history, gold had already been there, is traded and is even a main medium of exchange. Fast forward to the present, gold is still here, is still a widely traded commodity, is still a store of value, and is here to stay.
What has changed since then?
For one, the price of gold is readily available to the public. Everyone could easily find what the current price is and make that information useful in a trade. Commodity exchanges also allow commodities, such as gold, to be traded without the physical commodity at hand. Then, brokers that allow trading via the internet make things much faster and more convenient. Because of all this, information on price made public, convenient trading through the internet, the volume of trade in the market increasing, the spread between the bid and offer on gold has narrowed. The spread has become thin enough allowing for scalpers to trade on gold and profit even on small price fluctuations.
If you’d like to make money scalping the gold market, you could. You just need a strategy to make use of which could translate well on the gold market.
The Relative Strength Index (RSI) is an oscillating indicator based on momentum.
One characteristic it has is that it tends to closely shadow price action movement. Peaks and valleys closely coincide with the swing highs and lows that price action makes.
Another feature it has is that it is bounded, meaning it is set on a fixed range. Because of this, we could have a clear marker on its range where we could say that price is overbought or oversold. This is typically set at either 80 and 20, or 75 and 25 on some setups. Because of this feature, the RSI is often used as a reversal trading indicator. Traders often trade reversals when price is overextended.
Although the RSI is often used as a reversal indicator, price going over these levels could also mean that price is strongly trending on one direction. This is how the RSI filter works. If price is showing momentum to the upside, then it starts printing orange bars indicating a bullish scenario. If momentum is to the downside, it prints sky blue histograms indicating a bearish scenario.
Buy Sell Arrow Scalper
The Buy Sell Arrow Scalper is a trading indicator that pinpoints entry candles. Although we don’t actually know the mathematical formula behind the entry points, it does seem to work well. The good thing about this indicator is that it seems to be based on a confluence of certain conditions, or a reversal of an average. This means that although the entries are a bit later than the actual swing high or low, the entries have a higher probability because signals are printed when the reversal is somehow confirmed. It also conveniently indicates entries by printing arrows.
Trading Strategy Concept
This strategy is based on the trend direction indicated by the RSI Filter indicator. If the RSI indicator prints orange bars, we start looking for buy trades. If it starts printing sky blue bars, then we only look to sell.
As to the actual entry point, we will be using the Buy Sell Arrow Scalper. We take a trade as soon as an arrow pointing the direction of the RSI Filter is printed.
Timeframe: 5-minute and 15-minute chart
Commodity: XAUUSD (Gold)
Trading Session: any (with high volume)
Buy (Long) Trade Setup
- The RSIFilter indicator should be printing orange histogram bars indicating that the momentum is bullish
- A blue arrow pointing up should be printed indicating the entry point
- Enter a buy order at the confluence of the above rules
- Set the stop loss at the support below the entry candle
- Set the take profit target at 2x the risk on the stop loss
Sell (Short) Trade Setup
- The RSIFilter indicator should be printing sky blue histogram bars indicating that the momentum is bearish
- A red arrow pointing down should be printed indicating the entry point
- Enter a sell order at the confluence of the above rules
- Set the stop loss at the resistance above the entry candle
- Set the take profit target at 2x the risk on the stop loss
This strategy is a strategy that could be used to scalp the gold market. It is based on momentum making it highly effective for scalping.
Although gold is traded to the dollar all day long, it is highly advisable to trade only when the volume is there. This is because when the volume is low, the spreads to tend to be higher making it difficult to scalp. On top of it, volatility also tends to be slow making it hard to make money during low volume and volatility markets.
Forex Trading Systems Installation Instructions
Gold Scalper Trading Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex system is to transform the accumulated history data and trading signals.
Gold Scalper Trading Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this system accordingly.
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How to install Gold Scalper Trading Forex Trading Strategy?
- Download Gold Scalper Trading Forex Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right click on your trading chart and hover on “Template”
- Move right to select Gold Scalper Trading Forex Trading Strategy
- You will see Gold Scalper Trading Forex Trading Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download: