I found a trading strategy that works on XAUUSD(Gold)
--
I finally mastered trading Gold based on journaling and back-tested data
After having had it with loss after loss while trading Gold , I decide to take a step back set a couple of rule and taking this journaling thing serious.
Please note am not an expert yet but what am about to share is a simple strategy that I have seen work for most of my trades — no all of them.
Start
Alright, every time I open Trading View the first thing I do is say a short prayer and ask God to guide me and show me around the charts.
My Analysis
My analysis is always simple. From the top to the bottom (Top-down Analysis)
First I go the higher timeframes that is W — D — 4hr
W — Identify the weekly trend of the market
D — Confirm the trend if it aligns with the weekly trend
4hr — Identify major Order Blocks(OB)
Second block of analysis 2hr — 1hr timeframes
2hr — Identify Support and Resistance levels and Major FVG’s
1hr — Identify FVG’s that the market has made recently or is targeting
Based on my data, Gold tends to follow areas of liquidity, so I always ensure that I properly identify them before taking a trade.
Entry
I look for my entries on the 5min chart and confirm them on the higher 15min time-frame . This is where I look for the candlestick patterns that act as a signal for me to enter the trade.
My Trading Strategy
Its actually very simple.
Trade according to the trend of the market based on FVG’s and Order blocks.
Based on data I gathered, Gold tends to follow areas of liquidity based on FVG’s , OB’s and Support and Resistance zones.
Here is an example:
As you can see on the above chart, I marked the major and most recent FVG’s on the 1hr time-frame.
I then played the chart forward slowly to see whether price would hold the FVG on top but it didn’t.
Apone seeing this, I immediately placed my position, my Stop-Loss covering the FVG incase price reversed and targeted the next FVG. That ensured a good 1:2RR .
I knew my trade was safe ensuring it didn’t miss TP and possibly reverse.
Simple, right?
My Second strategy
Again very simple.
After marking my Order Blocks (OB) on the 4hr time-frame , I just played the chart and waited the price to hit it. Lemme show you an example.
As you can see on the chart above, price hit a major OB on the 4hr timeframe. This is a price point that higher institutions are willing to buy from and when price reaches this level, an impulsive move to the upside is expected.
I placed my position at the start of the OB level, Stop Loss below it and my target was the next highs which I have marked as the sell-side OB.
Look what happened, price went as predicted. Simple, right?
I will discuss more on Order Block on my next article and how to identify the valid OB to avoid a loss, like here in the example below which was missed.
My Advice
I would highly recommend that you back-test this strategy and see the results for yourself. Don’t implement it blindly.
Otherwise, that is all for now traders, ensure that you trade wisely with proper risk management. See you on the next one
PS. Make sure to check out my previous articles and follow for more trading tips.
