For pretty much all of 2013 the price on Gold (Gold v USD) was either in a down-trend or trading sideways and consolidating getting ready for the next move lower. However price has now made a short term move higher and for swing traders on the daily chart this presents a solid opportunity to start looking for price action trend trades.
As I discuss in the latest video that I released this week for traders which you can watch here: False Break Pin Bar Setup On Daily Chart ; price will often wind up tight before making a large break. We can see on the daily chart of Gold that down at the extreme low price was winding up inside a large bearish candle. Price made a false break, breaching the low of the bearish candle, before price snapped higher and this was the start of this explosive move higher.
Since this move higher, price has taken out some key resistance levels on the way. The best way for traders to look to play this new daily up-trend is to look for price to move back into value areas and then hunt for high probability price action signals at the value areas. The daily Gold chart below shows a key daily area, but traders can also take trades from value areas on their intraday charts such as the 4hr and 8hr charts should solid price action present at a good area within the trend.
Gold Daily Chart
Special Note: I have just released a new video on one of the most powerful trading signals that price action traders can trade with which is the false break pin bar reversal. This video also goes into other more advanced aspects of price action trading such as how price winds up in the Forex market and what it normally means when it happens (including what you should do when it does). To watch this new video see here: False Break Pin Bar Setup On Daily Chart
Related Forex Trading Articles & Videos
– The Key Rules to How Price Action Moves | Forex Trading Lesson
R u sayin, now, after the yellow metal has been climbing for two months straight, that now is the time to pay attention to the gold trend?
Doesnt this seem a tad late???
Hello Stevie,
what I am saying is that traders should always be looking for clear trends no matter how long they have been going on for. It doesn’t matter if the trend has been going for 2 months or two years, if there is a clear trend to be traded then surely it is better to trade within it, rather than not trade within it because it has been trending for too long? As long as the price action shows a trend then trade that trend until the price action starts showing otherwise.
Safe trading,
Johnathon