How I made $260,000 trading GOLD so you can just copy me

Summary

The speaker shares a gold trading strategy with an 83% win rate, using a three-step process focused on price action, market structure, and candle behavior. They trade during the second hour of the Asian session, emphasizing the importance of high-volume periods around the 4-hour candle open. The approach involves top-down analysis, starting with higher time frames and refining entries on lower ones. DXY correlation (Dollar Index) is used as an inverse indicator for gold. The strategy aims to identify direction, areas of interest, and entry models for quick, high-quality trades.

Takeaways

• 📊 The user has been trading gold for over 4 years, using a three-step strategy that boasts an 83% win rate.
• ⏰ The preferred trading time is around the second hour of the Asian session and at the opening of a new 4-hour candle due to higher volume and clearer price direction.
• 📈 The user focuses on price action, particularly market structure and candle behavior, and integrates DXY (Dollar Index) correlation into their trades.
• 🔄 The three-step strategy involves: 1. Identifying overall direction (bullish, bearish, or ranging), 2. Finding an area of interest, 3. Looking for an entry model like a market structure shift or a break and retest.
• 📉 Higher time frame analysis is essential for establishing overall direction, while lower time frames are used for precise entries.
• 🕒 The user notes that price tends to move in a push-pull pattern, often creating a pullback before continuing in the direction of the trend.
• 📐 The strategy involves looking for bearish signs at resistance levels, such as when multiple time frames (4-hour, hourly, and 30-minute) close bearish.
• 🔄 Candle behavior is key, and a top wick forming in the first half of a new candle can indicate a good entry point for a sell.
• 📅 Time frame alignment is critical, as the user connects high time frame candle closes with lower time frame entries to increase win rates.
• 💹 DXY correlation is used to confirm trades, with inverse movements between gold and the Dollar Index providing additional confidence for trade direction.

Q & A

What is the primary strategy mentioned for trading gold?

The strategy mentioned focuses on trading gold around the 4-hour candle close, as this time is said to have high volume and a clearer market direction. The process is based on market structure and candle behavior.

Why does the trader prefer trading at the 4-hour candle close?

The trader finds that trading around the new 4-hour candle close offers a higher win rate, as it provides clearer entries and a better sense of market direction due to the increased volume and structure at that time.

What are the three steps in the trader's process to achieve an 83% win rate?

The three steps are: 1) Identify the overall market direction (bullish, bearish, or range), 2) Find an area of interest for potential trades, and 3) Look for an entry model such as a shift in market structure, a break and retest, or a high time frame candle close.

What is the significance of using DXY correlation in this strategy?

DXY, or the Dollar Index, is inversely correlated with gold prices. By analyzing DXY movements, the trader gains additional confirmation for potential gold trades, improving accuracy in entry and exit points.

How does the trader use top-down analysis to enhance trade accuracy?

The trader starts with higher time frames, like the daily or 4-hour charts, to establish overall market direction and structure, then moves down to lower time frames for precise entries based on the same structure.

Why does the trader not immediately enter buy positions despite seeing bullish high time frame closes?

Even with a bullish high time frame close, the trader waits for a bottom wick to form, which signals a pullback before the continuation of the bullish move. This improves trade timing and reduces the risk of entering prematurely.

What is the importance of identifying market structure shifts in this strategy?

Identifying market structure shifts helps the trader determine when a trend reversal might occur, such as breaking a low and then a high, or vice versa. This insight is key to finding optimal entry points.

How does the trader refine entries on lower time frames?

The trader refines entries by analyzing lower time frames like the 1-minute or 5-minute charts. By waiting for the creation of a wick and observing fractal price patterns, the trader ensures better risk-to-reward ratios.

What role does candle behavior play in the trader's strategy?

Candle behavior helps the trader determine market direction based on how candles open, close, and form wicks. For example, a bearish close signals that price is likely to continue in that direction, and the trader waits for the next candle to form a top wick before entering a sell.

How does the trader use high time frame structures to find trade opportunities on lower time frames?

The trader aligns high time frame market direction with lower time frame entries. For instance, if the 4-hour and daily candles are bullish, but the lower time frames show a pullback, the trader waits for the pullback to complete before entering a trade in the direction of the overall trend.