Home Education What are the Best Gold Forex Trading Strategies?

What are the Best Gold Forex Trading Strategies?

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Forex Trading Strategies

Simple Forex Trading Strategies

Most successful gold Forex traders have a strategy which they perfect with time. Before trading gold in Forex market you should have a strategy in mind to maximize profits and minimize the losses. Here are some Forex trading strategies that you can employ while trading in gold. They are good for both beginners and expert investors alike and provide a solid foundation for developing an effective trading strategy suited to your investment needs.

1. Simple Balanced Strategy

Forex Trading Strategies

This strategy looks at certain indicators to provide a strong basis for entry and exit points. Simple balanced strategy EMA (Exponential Moving Average) RSI (Relative Strength Index) and Stochastic Oscillator values to determine the best Forex trading strategies.

Technical Indicators: 5 EMA, 10 EMA, Stochastic Oscillator, RSI, Candlestick Chart

Long Strategy:Buy gold currency pair when the 5-period EMA rises above the 10-period EMA and Stochastic lines rises but is below 80.00 while RSI value is above 50 indicating that the asset is not in overbought condition.

Short Strategy: Sell gold currency pair when the 5-period EMA falls below the 10-period EMA and Stochastic lines falls but is above 20.00 while RSI value is below 50 indicating that the asset is not in oversold condition.

2. Day Trade Pullback Strategy

Forex Trading Strategies

Day trade pullback strategy is great Forex trading strategy for day traders. The trading opens and closes in same day. It utilizes 15 minute, 30 minute, or hourly Heikin Ashi charts for trading. Heikin Ashi charts are similar to candlestick charts that are useful for determining extremely short term trends. Day trade pullback strategy provides entry and exit signals and signifies major trends.

Technical Indicators: 10 EMA, 30 EMA, 1 Day or 30 minutes Heikin Ashi Candlestick Chart

Long Strategy:Buy gold currency pair when the 10-period EMA rises above the 30-period with significant gap between the two periods.

Short Strategy: Sell gold currency pair when the 10-period EMA falls below the 30-period with significant gap between the two periods.

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3. Day Trade EMA Strategy

Forex Trading Strategies

Day trade EMA strategy is also great Forex trading strategy for day traders. The trading utilizes simple candlestick charts to determine the trading strategy. EMAs are lagging indicators that are especially helpful when the market is trending during big price swings.

Technical Indicators: 5 EMA, 12 EMA, RSI, 1-day candlestick chart

Long Strategy:Buy gold currency pair when the 5-period EMA rises above the 12-period with RSI below 50.

Short Strategy: Sell gold currency pair when the 5-period EMA falls below the 12-period with RSI above 50.

4. Fast Moving EMA Crossover

Forex Trading Strategies

Fast moving EMA crossover strategy is another Forex trading strategy for day traders. The trading is based on fast moving EMAs to determine effective time to buy and sell the gold currency pair. EMAs are lagging indicators that help in establishing the new trend of the gold prices. This strategy provides good results when the market is trending (upwards or downwards) with big price swings. However, it may give a false signal if the price do not experience major swings.

Technical Indicators: 10 EMA, 25 EMA, 50 EMA, 1 Hour Candlestick Chart

Long Strategy:Buy gold currency pair when the 10-period EMA rises above the 25-period and 50 period EMA.

Short Strategy: Sell gold currency pair when the 10-period EMA falls below the 25-period and 50 period EMA.

5. Simple Moving Average Crossover

Simple Moving Average Crossover

Simple moving average crossover strategy is suitable for any time frame. The trading utilizes similar concept to simple balanced strategy described above buy using different indicators. The chart is easy to set up and does not require complex analysis.

Technical Indicators: 7 SMA, 14 SMA, 21 SMA, Any period candlestick chart

Long Strategy:Buy gold currency pair when the 7-period SMA rises above the 14-period and 21 period SMA.

Short Strategy: Sell gold currency pair when the 7-period SMA falls below the 14-period and 21 period EMA.

6. Stochastic High Low Strategy

Stochastic Strategy

Stochastic high low utilizes stochastic indicators to determine entry and exit points for buying and selling gold currency. It indicates quite accurate strategic points to earn great returns.

Technical Indicators: Stochastic Oscillator

Long Strategy:Buy gold currency pair when Stochastic line falls below 20 reaches 10 and then rises above 20.

Short Strategy: Sell gold currency pair when Stochastic line rises above 80 reaches 90 and then falls above 80.

7. RSI High Low Strategy

RSI Strategy

RSI high low strategy is a great strategy that gives an edge to investors in Gold Forex trading. It is suitable for any trading session and indicates that the gold prices are about to change in direction.

Technical Indicators: RSI, Anytime candlestick chart

Long Strategy:Buy gold currency pair when RSI falls below 30 reaches remains stable and then again rises to 30.

Short Strategy: Sell gold currency pair when RSI rises above 70 remains stable and then again falls to 30.

How to Trade Gold Online

The Price of gold is constantly on the move. Take advantage of the daily price changes in gold with an online trading account. Some brokers offer bonuses of up to 30% on your first deposit (Terms and conditions apply). Open Gold Trading Account Here

The broker trading platform will also provide you with numerous charting tools and the ability to trade other commodities and currencies in addition to gold CFD’s. You might also want to begin trading with a demo account before attempting to risk any of your own money. That way you can practice trading with virtual money on the demo platform first.

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