CRInvestor

Gold broke....stalking short setups

FX:XAUUSD   Gold / U.S. Dollar
327 9 1
Thoughts on gold             this eve. off 30m chart. H&Sh T at OTE             short ss             turned into monster short. Break of recent lows suggests more down. Will be stalking current OTE             short ss             for entries/setups...trade through 1224.17 and will be looking for 1243.70...
you say short but trading to 1243, can you explain?
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Sure....for range trading I trade Fibonacci levels where I only take trades in what is called the optimal trade entry (OTE) window. Specifically that window is a 61.8% to 78.6% retracment of the previous move (ie. buying the dips or selling counter trend rallies). The sweet spot (or what I refer to as the 'ss') is 70.5% (or the midpoint of those two levels) and represents a really good target to try and put the trade on. The key here is to have either a trend line or recent significant low/high to use as your stop point should the market go right past your entry. So in this example, gold broke hard at the OTE short ss at 1251.07 (refer to chart) and raced down to take out the key lows at 1223.59. For me to consider putting on a short, I would like to see the market rally back up into its current OTE short SS (which in this case was/is the 1243.70 made reference to in my original note). Once we trade to the OTE Short SS I can consider putting on a short position. Should the market break to lower lows before that event (which it did here to 1215.13) then I will have to redraw my Fibs and figure out where the new OTE Short SS is......there is no guarantee the market will co-operate, you just have to live with what the market gives us...hopefully that all makes sense....cheers and gl trading....
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pumpkinz CRInvestor
Very thanks and very helpful, do you can recommend a good book or paper about the theme?
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I learned this strategy from a hedge fund manager. He as a very extensive tutorial series on YouTube. If you really want to learn how to trade like the pro's then I highly suggest you take a week or two and watch all of his videos...it will change you /user/InnerCircleTrader?feature=watch#
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pumpkinz CRInvestor
Thanks man, I will see them asap.
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CRI, do you have any more info about your BoT Fibonacci model or any resources you could recommend?
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please refer to above comment re. OTE setups and BoT trading info can be found on http://www.netpicks.com/trading-tools/dynamic-profit-generator/ where 'DPG' is really just a play on the classic ab=cd harmonic pattern which you can google....gl and good trading
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OTE's: http://www.youtube.com/user/InnerCircleTrader?feature=watch BOT's: http://www.netpicks.com/trading-tools/dynamic-profit-generator/
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So I see today we rallied right back up into resistance....havn't done OTE's yet but I bet we are real close to one now....lol
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