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.

Outlines

00:00

💡 Introduction to Gold Trading and Strategy Overview

The speaker, an experienced gold trader for over 4 years, introduces a gold trading strategy with an 83% win rate, using a three-step process. The focus is on trading around the opening of the 4-hour candle, using price action, market structure, and DXY (Dollar Index) correlation. The first step is identifying the overall direction (bullish, bearish, or ranging), followed by finding an area of interest for entry, and finally, executing an entry based on shifts in market structure, break and retest, or high-time-frame candle closes.

05:01

📊 Daily Time Frame and Market Structure Analysis

The speaker explains how to analyze the daily time frame, noting a strong bullish close but waiting for a pullback before looking for buys. Emphasis is placed on the push-pull nature of price movement and the importance of considering the time of day. By aligning the 4-hour, 1-hour, and 30-minute candles, the speaker highlights the importance of understanding the creation of wicks and shifts in market structure to refine trade entries.

Keywords

💡Price Action

Price action refers to the movement of a security's price plotted over time. In the video, the trader emphasizes using price action as the core method to identify trades, which involves analyzing market structure and candle behavior without relying on indicators. For example, the trader uses price action to determine the direction of gold by observing the shifts in market structure and candle patterns.

💡Market Structure

Market structure refers to the overall pattern of highs and lows on a price chart, which helps identify the trend direction. In the video, the trader focuses on market structure to find shifts in trends, such as breaking previous highs or lows. Understanding market structure is crucial for identifying areas of interest and making decisions based on whether the market is bullish, bearish, or ranging.

💡Candle Behavior

Candle behavior involves analyzing the formation and characteristics of candlesticks on a price chart, which reflect market sentiment and potential price movements. The trader in the video emphasizes the importance of observing candle behavior, especially around the opening of new high time frame candles, to find optimal trade entries. For example, the trader looks for bearish candle closes to identify selling opportunities.

💡Top-Down Analysis

Top-down analysis is a trading approach that starts by examining higher time frames (e.g., daily or 4-hour charts) and then zooms into lower time frames (e.g., 1-hour or 5-minute charts) to refine entry points. The trader uses this method to align overall market direction with entry timing, ensuring that lower time frame actions support the broader trend seen on higher time frames.

💡4-Hour Candle

The 4-hour candle represents a candlestick that summarizes price movement over a four-hour period, and it plays a significant role in the trader's strategy. The trader finds that trading around the opening of new 4-hour candles offers high win rates, as it provides clearer market direction and volume. For instance, the trader highlights the importance of observing how the market reacts when a new 4-hour candle opens.

💡Area of Interest

An area of interest refers to specific price levels or zones on the chart where the trader expects significant market reactions, such as support or resistance. In the strategy, the trader identifies areas of interest as potential entry points, looking for confirmation signals like market structure shifts or bearish/bullish candle closes. These areas help define where trades should be considered.

💡Shift of Market Structure

A shift of market structure occurs when the current trend direction changes, such as transitioning from making higher highs to making lower lows. This concept is central to the trader’s strategy, where spotting these shifts allows for the identification of potential trade entries. For instance, the trader explains using a shift in market structure on lower time frames, like the 5-minute chart, as a trigger for entering a trade.

💡Break and Retest

Break and retest is a trading strategy where the price breaks a key level (support or resistance) and then retests that level before continuing in the original direction. The trader uses this approach as one of the entry models, looking for price to break a significant level, retest it, and then confirm the direction, providing a higher probability of success.

💡DXY Correlation

DXY refers to the U.S. Dollar Index, which measures the value of the dollar against a basket of major currencies. In gold trading, DXY is inversely correlated, meaning that when the dollar strengthens, gold usually weakens, and vice versa. The trader uses DXY correlation to add confirmation to gold trades, ensuring that the market's broader sentiment aligns with the planned trade direction.

💡Fractal Patterns

Fractal patterns refer to repetitive price behaviors that occur across different time frames, illustrating that market movements are self-similar at all scales. The trader highlights that price action patterns such as wick formations or shifts in structure happen on all time frames, from daily charts down to 1-minute charts, allowing for refined entry points based on a consistent approach.

Highlights

Gold trading strategy with an 83% win rate based on a simple three-step process: identify direction, find an area of interest, and apply an entry model.

The best time to trade gold is around the 4-hour candle close and open, particularly during the second hour of the Asia session for higher win rates.

Price action trading based on market structure and candle behavior, focusing on shifts, breaks, and retests.

DXY (Dollar Index) is inversely correlated with gold, and is used as an additional confirmation tool for trade decisions.

Step 1: Identify the overall direction (bullish, bearish, or ranging).

Step 2: Find an area of interest for potential entries, such as a high time frame candle close, and wait for price to react.

Step 3: Apply an entry model like a shift in market structure or break and retest. Refine entries for better risk-to-reward ratios.

Top-down analysis is key: start with higher time frames and enter on lower time frames for precise timing.

High time frame structures influence trades, but short-term pullbacks often occur before continuation, requiring awareness of price exhaustion.

Fractal nature of market patterns allows for refining entries across multiple time frames.

Focus on creating a 'bottom wick' on the daily time frame before looking for bullish continuation.

Multiple time frame candle closes (4-hour, 1-hour, 30-minute) aligning in a bearish direction can provide strong sell opportunities.

Using smaller time frames like the 1-minute or 5-minute chart allows for quicker entries with favorable risk-to-reward ratios.

Gold tends to experience strong reactions at key levels, which can be exploited for quick, high-probability trades.

DXY pullbacks can signal potential bearish moves in gold, enhancing confirmation for sell entries.

Transcripts

so I've been trading gold for over 4

years I'm going to show you the exact

approach I use to catch trades like

these every single day and this strategy

has an 83% win rate with a simple

three-step process and I'm going to show

you the most important things I focus on

when trading gold so I trade gold at the

second hour of Asia every single day you

don't have to trade at Asia anytime

works but what's important I find I get

a really high win rate when I'm trading

around that new 4-Hour candle so when a

4-Hour candle closes and a new one is

opening right here I find I have

extremely high win rate it's a lot

easier to find direction and entries

when I'm trading around a new high time

frame candle so this is a trade I took

this morning with exact strategy that

I'm going to show you with my Discord

for a pretty simple clear 5minute trade

so there tends to be high volume at that

new for candle open and this is why I

recommend to trade that open so I trade

purely based off price action which can

be broken down into Market structure and

candle Behavior I also use dxy

correlation with my trades so that's the

dollar Index which is inversely

correlated which I will cover later the

first step is just to identify an

overall direction this can be bullish it

can be bearish it can be rangeb that

still direction is just sideways the

second step is to find an era of

Interest so this is where I'm looking to

find my entry model which is a third

step which is an entry model this can be

a shift of Market structure it can be a

break and retest it can be a high time

frame candle close I'm going to cover

the ones that I use and have found the

most success with but this simple three

step approach is what I use to get an

83% win rate it's like pretty simple it

doesn't have to be overly complicated I

also use top down analysis so starting

on the higher time frames and entering

on the lower time frames so first off

I'm going to start off on the daily time

frame we have a really strong High time

frame close bullish so really big body

close above previous highs and that's

really strong bullish clo but am I going

to be looking for buys no I'm first

going to be looking for it to create a

bottom wi fill in some of this move as

price tends to move in a push and a pull

so being mindful of the time of day

you're trading at is really important so

we have a previous 4-Hour close bullish

we've broken above these highs after

taking out a low so kind of a shift

where we made a low broke that low went

into break a high and then had a

continuation bullish so 4 hour is

aligning bullish with the daily as well

then if we just go onto that 11 a.m. so

this will be the 11:00 a.m. open of that

new 4our candle we do have a 4-Hour

close barer so overall High time frame

is looking bullish but we're not looking

for buys why is that I'm going to kind

of cover that now um just being mindful

we are at alltime highs on gold so we

are around a higher time frame are of

Interest we also had this 4-Hour close

bearish here so 4H hour close bearish uh

creating this little AA of Interest as

well um open close as well so if we just

drop down to that 1 hour time frame as

well you have an hourly close with that

4 hour close bearish yes High time frame

structure is looking bullish but you had

a really big push up here you a really

big push up here and you're at some

highs so price is a push and a pull if

you want to continue moving bullish it's

unlikely that you just keep on pushing

price will tend to get exhausted you

have a pull back first and then you'll

continue so I find this tends to happen

around the start of the day if you have

a really big high time frame close

bullish on the day um the start of that

next day will tend to create a bond Wick

first there create bottom Wick and then

flip bullish and continue on if we just

go down to this alley um I place a level

at the open and close so when you go

from a bearish to a bullish candle

bearish to a bullish candle or a bullish

to a bearish that would be a level there

and I just draw a zone or era around

where price is reacting to so being

mindful of overall High time frame

structure that overall bullish bias is

actually giving us reasons to sell cuz

we're first looking for it to create

that bottom Wick and then move bullish

and you also at a high time frame area

of Interest kind of like a resistance

level um and you have that 4-Hour candle

close bearish here 4our close bearish

with also if you look here you have an

hourly close bearish this candle and you

also have a 30 minute close bearish any

close below the open close close below

the structure if a candle closes in a

certain direction let's say bearish

you're first going to look for it to

create a top Wick to then flip and

continue that direction overall daily

time frame has a closed bullish so

you're looking for it to create a bottom

Wick um but 4our hourly and 30 minute

close bearish so you're looking forward

to open create a top wick on that 4H

hour then flip to push down create that

bottom wick on that daily so you're kind

of stacking time frames to find

direction and to really look at how

price moves and doing this will give you

a really high room rate this is like one

of the most important things that I

found for finding direction but that's

mainly counter behavior for Market

structure what are we looking at um if

we were just to zoom out a bit on Market

structure you have an overall shift

bullish so yes you have that daily close

bullish but what does it look like you

break a low uh you have highs around

here and then you break a high come back

into retest that high here and you

continue pushing bullish So based off

Market structure that's how you kind of

find that high time frame bias but um

connecting low time frames and high time

frame candles this 4H hour hourly and 30

minute candle closes bearish also aligns

with let's go on the 5 minute time frame

now this five minute shift of Market

structure so what does that look like

you create a high here create a new low

and then create a higher high so you

have a break of a high and then you

immediately come in and break a low so

exactly how we're looking at that

previously for that bullish record

structure you're now looking at that on

that bearish structure so lower time

frame wise we're looking very bearish

because you have those High time frame

candle closes bearish and you have this

5 minute shift in Market structure if we

then were to go down into a one minute

time frame you still see that bigger

shift in Market structure but then we

can refine that further but if we just

look at this lower time frame structure

we have kind of this these lows and

these highs this could be like a lower

time frame a of Interest we've gotten

our Direction we've got a lower time

frame a of Interest this is kind of the

era that we're looking to take a sell um

then we just wait for an entry so this

would look like on that four hour we're

looking for it to open create a top Wick

maybe react to this level here and then

flip and continue bearish so we

immedately open kind of go in each

Direction and then we start moving

bullish we have a pretty strong reaction

to these highs here really strong

reaction what is that that's about six

Pips of movement and you have a big

close bearish you even break the low of

the previous candle as well so exactly

how we're looking like on the 4-Hour

time frame where you have a bearish

close looking for it to create a top

quick in that first half of that candle

to enter for a good entry I'm going to

do the exact same thing on this one

minute candle looking for it to create a

top quick in that first half of that

candle because it price is fral patterns

happen on every single time frame it's

fractal just for a better entry and this

is how you refine get really nice risk

Awards really nice entries with a high

win rate um and my trade is on average

around 5 to 10 minutes a really quick

simple trade with volume we're above the

open the best sells will always be above

the open the best buyers always be below

the open we immediately create a top

Wick first here respect that high these

highs and then we drive bearish here the

4-Hour candle flip

and I took my take profit at around 1 to

two pretty nice simple trade let me move

on to create that bottom Wick with lots

of volume in that first half of the day

bottom wick on that daily time frame and

then we have a shifter

structure and then the day flips and

continues moving bullish so hopefully

this helped with aligning time frames

top down analysis Direction air of

interest and entry model which can be a

shift can be a break and retest can just

be a one minute candle close in your

favor that reement of those areas of

interest of everything allows me to get

an 83% win rate with that simple

three-step approach and really high

quality trades there and you could have

used the exact same thing for this buy

as well so you have a clear break of a

low then break of a high a pretty clear

simple shift with a pullback for that

continuation of that higher time frame

Trend you created a bottom Wick and you

had a shift lots of volume in your favor

for a really nice clear simple trade on

that 30-minute bottom work being created

as well for a really nice trade and just

as well another thing that I was looking

at um when whenever you're looking for a

sell on gold I'm always looking for dxy

to be the inverse so moving in the

opposite direction gold was looking

pretty bearish but what I was looking at

was a previous air of interest on the

30-minute time frame and we had a nice

reaction to this low here same reaction

to these highs we moved off this low for

a pullback so price is always going to

be a push and a pull you can be low on

dxy um but if you're expecting a

pullback on that you can use it as added

confirmation of that dxy expected

pullback to take a sell on gold to

continue moving bearish and so that's

the strategy I Ed to get that 83% run

rate on gold trading with dxy

correlation and that shift of structure

that one minute shift of structure where

you're going from making a new high to a

new low entering on that pullback for

continuation of that trade and that's a

sell um if you're looking for a buy with

that overall higher time frame you can

look for a breakable a low and then a

break of a high there with a high time

frame cter close in your favor so it's

just at 30 minute for a continuation of

that trade