Some of my random notes on the attached XAUSD 15-minute chart and explanations:
I start by looking at monthly, weekly, daily and four hour charts and trade on either 30 minute or 15-minute charts. Entries and exits of trades.
Do You Recognize Forex Master Pattern?
1) Asian Session- ranging and low volume. Don't Trade it.
2) Asian Session and London Session overlap of one hour- noted in the green box. You could have bought on breakout of yellow Asian box (noted) and held until the main daily pivot point (RED) was hit by price action, around $4/4 pip move for a quick scalp.
3) You should be aware of when the highs and lows (general times) that they occur each day. From 11 pm to 2 am EST/USA, high or low for me occurs, so IF this time is by the main daily PIVOT POINT (red line) or S1/R1 levels (white line), then I expect a reversal of price action to happen soon.
4) I trade until 9 a.m. EST/USA related to London being done and only N.Y. session being open and lunch/slow volume for the rest of the session.
5) Use 20, 50 & 200 ema- when 20 ema (Red) crosses the 50 ema (White), you MIGHT want to take a trade-in that direction.
6) Entry (main Pivot Point) red line ($1500) with a $2/2pip stop loss ($1502) or more conservative bearish entry at $1497 (20 ema/50 ema cross- white/red lines) with a $2/2 pip stop loss at $1499.
7) XAUUSD or gold price action DOESNT reacts like any other Forex pairs that you might trade. You need to understand the fundamentals and technicals of trading gold or XAUSUD or you will have a lot of issues. There are world issues that you need to stay on top of which can move XAUSUSD up or down in one day $40 to $50 dollars/pips, which would wreck most retails accounts if you are on the wrong side of this price action move.
8) Both Monday's and Friday's can be hard to trade any Forex pairs, especially XAUUSD. Major news can move gold violently and suddenly if you do not know what you are doing during major news, it if good to just watch and learn and not trade. *I thicked all chart lines, so people could see easier.
Finally, if you do not know who Mark Douglas is, please youtube and or read his books on trading in the zone, it will change your way of trading. Wish you best in trading, use a stop loss and money management, so you can trade for a lifetime. Keep Trading Simply is your goal, making money is the target.
I start by looking at monthly, weekly, daily and four hour charts and trade on either 30 minute or 15-minute charts. Entries and exits of trades.
Do You Recognize Forex Master Pattern?
1) Asian Session- ranging and low volume. Don't Trade it.
2) Asian Session and London Session overlap of one hour- noted in the green box. You could have bought on breakout of yellow Asian box (noted) and held until the main daily pivot point (RED) was hit by price action, around $4/4 pip move for a quick scalp.
3) You should be aware of when the highs and lows (general times) that they occur each day. From 11 pm to 2 am EST/USA, high or low for me occurs, so IF this time is by the main daily PIVOT POINT (red line) or S1/R1 levels (white line), then I expect a reversal of price action to happen soon.
4) I trade until 9 a.m. EST/USA related to London being done and only N.Y. session being open and lunch/slow volume for the rest of the session.
5) Use 20, 50 & 200 ema- when 20 ema (Red) crosses the 50 ema (White), you MIGHT want to take a trade-in that direction.
6) Entry (main Pivot Point) red line ($1500) with a $2/2pip stop loss ($1502) or more conservative bearish entry at $1497 (20 ema/50 ema cross- white/red lines) with a $2/2 pip stop loss at $1499.
7) XAUUSD or gold price action DOESNT reacts like any other Forex pairs that you might trade. You need to understand the fundamentals and technicals of trading gold or XAUSUD or you will have a lot of issues. There are world issues that you need to stay on top of which can move XAUSUSD up or down in one day $40 to $50 dollars/pips, which would wreck most retails accounts if you are on the wrong side of this price action move.
8) Both Monday's and Friday's can be hard to trade any Forex pairs, especially XAUUSD. Major news can move gold violently and suddenly if you do not know what you are doing during major news, it if good to just watch and learn and not trade. *I thicked all chart lines, so people could see easier.
Finally, if you do not know who Mark Douglas is, please youtube and or read his books on trading in the zone, it will change your way of trading. Wish you best in trading, use a stop loss and money management, so you can trade for a lifetime. Keep Trading Simply is your goal, making money is the target.