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Trading Strategy XAU

Buy Program and Sell Program Detail.

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radhimaulidan
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85 views3 pages

Trading Strategy XAU

Buy Program and Sell Program Detail.

Uploaded by

radhimaulidan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Trading Strategy

➢ Trading strategy for forex pair and gold based on price action.
❖ Top down analysis.
On monthly timeframe we focus on :

• Use seasonal tendency of the assets as a roadmap


• Anticipate Quarterly Trend Shift
• Interest Rate differentials of the Forex Pair
Ideally select a pair with a higher and lower interest rate.

• Intermarket analysis – between other asset classes that will support the idea.
Then we profile the market based on the market structure and determine key price levels (The
High and Low of previous months, or a support/ resistance level) and the current trading range.
Monthly Bias Defined (Bearish/ Bullish)
Transpose key level down to weekly timeframe. We focus on :

• Relative strength analysis


• Commitment of traders data
• Market sentiment
• Intermarket analysis with USDX
Then we profile the market based on the market structure and determine key price levels (The
High and Low of previous 1 –2 weeks, or a support/ resistance level) and the current trading
range.
Weekly Bias Defined (Bearish/ Bullish)
Transpose key level down to daily timeframe. We focus on :

• Analyze commercial hedging and open interest


• Intermarket analysis – between correlated or inversely correlated assets, such as eurusd
with gbpusd.
• USDX chart divergence
Then we profile the market based on the market structure and determine key price levels (The
High and Low of prev 1 – 3 days, or a support/ resistance level) and the current trading range.
Daily Bias Defined (Bearish/ Bullish)
We can conclude the higher timeframe directional bias and current market profile (Whether it
is in consolidating phase, trending phase, or reversal phase).
Tranpose all higher timeframe key level into a lower timeframe (Timeframe used for trading) ->
H4/H1/15m/5m charts.

❖ Context for Intraday Trade:

In expected bullish day, Ideally open long position below the daily open level.
In expected bearish day, Ideally open short position above the daily open level.
Determine the current trading range and how it intersect with the HTF key level.
Determine intraday key level.
Determine area of possible liquidities.
Determine the current market profile.

❖ On bullish setup:
We stalk for a break above the market structure after it hits a HTF key support level.
Additional things that support the trade idea:
Determine price is in discount area on the current trading range
Intermarket analysis with the correlated assets
Entry technique:
- Open long on 60% – 80% level of Fibonacci retracement of the impulsive price swing
that break the market structure, or
- Open long on a false break setup.
Trade management technique:
- Ideal trade = 1:3 Risk:Reward
- Targetting liquidity at recent old high of the current trading range as first take profit
objectives
- When price hits 1 R, trail stop loss into break even.
- When price hits first take profit objectives, take 50% partial off the trade
- Let the other 50 % partial to run, increase the trailing stop loss level.

❖ On bearish setup:
We stalk for a break below the market structure after it hits a HTF key resistance level.
Additional things that support the trade idea:
Determine price is in premium area on the current trading range
Intermarket analysis with the correlated assets
Entry technique:
- Open short on 60% – 80% level of Fibonacci retracement of the impulsive price swing
that break the market structure, or
- Open short on a false break setup.
Trade management technique:
- Ideal trade = 1:3 Risk:Reward
- Targetting liquidity at recent old low of the current trading range as first take profit
objectives
- When price hits 1 R, trail stop loss into break even.
- When price hits first take profit objectives, take 50% partial off the trade
- Let the other 50 % partial to run, decrease the trailing stop loss level.

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