It’s well known fact; what Patient Bear “wants”, Patient Bear “gets”. After all, you gonna tell him different? Well, not me, and what Patient Bear wants more than anything is profits from trading. I got up this morning and it sure looked like maybe we were in for a repeat of yesterday; basically watching paint dry while the hours ticked away with no action anywhere.
For sure, I’ve seen better days in gold, but hey, we got a very modest move up today with the algorithm hitting on all cylinders. Before I begin with today’s algo trades, though, I want to mention 2 things to keep in mind when trading that aren’t part of the algorithm because they are “subjective” in nature and not “objective; 1) Asia & early European moves in gold [both up and down] are very often “faded” in the New York session with the big part of the U.S. sessions moves going in the opposite direction, and 2) when the daily range coming into the U.S. session is below $10 per Oz., very often the first move of the day is a “fake out” to the day’s high or low [maybe making a new high/low for the day by a few pennies or not] and then moving quickly in the opposite direction for the day; in other words a reversal.
Today saw both come into play as gold moved slightly lower all night, made a move to take out the low and couldn’t do it, crossed the daily white horizontal line for the day and then spent the rest of the day moving to make a new high and put in a new range of the day around $12 per Oz.
I’m using the MT4 from Assets FX today, and going forward starting tomorrow I’ll be using the LMFX MT$ for all gold trades and examples. Assets FX has as 08:00 New York time a server time of 12:00; LMFX has a server time of 15:00.
As you can see, the chart has the day’s white horizontal line, and I placed the white arrow in an area I want to highlight in the next chart by zooming in some.
Now, I’ll zoom out to where the white arrow is for the trade.
[Note: To make chart larger just single click left mouse on chart to enlarge.]
Since gold hit the exhaustion line, I now wait for plum to get close to yellow [above or below does not matter] and when the slope of plum changes initiate another buy. Below is trade #2 of the day.
Total it all up, and your looking at somewhere around $8 per Oz. profit for the day; time to hit the exit gate.
Even though the range is relatively on the light side at around $12, it’s August and trading desks are light due to vacations, and what’s wrong with $8 per Oz. early in the day and the clear blue, turquoise ocean awaits? [Right, like you’d hang around this slop if you lived in the Caribbean?]
Have a great day everybody!
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